The Australian Dollar (AUD) trades on the back foot against the US Dollar (USD) on Friday, as resilient US economic data and hawkish-leaning Federal Reserve (Fed) rhetoric keep the Greenback firmly supported.

USD/JPY trades lower around 158.00 on Friday at the time of writing, down 0.40% on the day, as the Japanese Yen (JPY) regains some traction against the US Dollar (USD).

The Euro (EUR) turns lower against the US Dollar (USD) on Friday, surrendering intraday gains as renewed demand for the Greenback keeps the pair on the defensive. At the time of writing, EUR/USD is trading flat near 1.1600, after briefly sliding to its lowest level since November 28.

The British Pound trades sideways on Friday during the North American session, after reaching a daily high of 1.3413, but solid US data revealed in the week capped Sterling’s advance. The GBP/USD trades at 1.3380 and continues to distance from the 200-day SMA key technical level at 1.3405.

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The Japanese Yen (JPY) is strong, up 0.3% vs. the US Dollar (USD) and outperforming all of the G10 currencies with the exception of NOK and NZD, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

The Pound Sterling (GBP) is up a modest 0.2% vs. the US Dollar (USD) and a relative performer among the G10 currencies in an environment of broad – albeit mild – USD weakness, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

The Euro (EUR) is up a fractional 0.1% vs. the US Dollar (USD) and a relative underperformer among the G10 currencies as we head into Friday’s NA session, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

The Canadian Dollar (CAD) is little changed on the day, with neither a modest bid for US equity futures nor a more obvious bump in crude prices helping the CAD out, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

The British Pound (GBP) remains under pressure against the Japanese Yen (JPY) on Friday, with GBP/JPY extending losses for a third straight session as repeated warnings from Japanese officials revive speculation over possible currency intervention.

USD/CAD trades flat around 1.3900 on Friday at the time of writing, virtually unchanged on the day. The pair’s hesitation is mainly driven by a stronger Canadian Dollar (CAD), supported by the rebound in Oil prices, while the US Dollar (USD) remains firm in the wake of strong US data sets.

The Swiss Franc (CHF) edges higher against the US Dollar (USD) on Friday as the Greenback softens after a data-driven rally that pushed it to over one-month highs. At the time of writing, USD/CHF is trading near 0.8015, down about 0.25% on the day.

GBP/JPY hits weekly lows below 212.00 after rejection at 213.30 on Thursday.

EUR/JPY trades around 183.70 on Friday at the time of writing, up 0.15% on the day. The cross benefits from a still-fragile Japanese Yen (JPY), as investors digest mixed macroeconomic signals from the Eurozone alongside rising political risks in Japan.

The Pound is trimming losses against the US Dollar on Friday, with price action returning above 1.3400 ahead of the US session opening, up from Thursday's lows near 1.3360. The pair is on track to end the week practically unchanged after depreciating about 0.7% in the previous two weeks.

USD/JPY faces a volatile month as Japan prepares for a snap election on 8 February, with outcomes potentially swaying the yen depending on LDP gains and policy expectations, ING's FX analyst Chris Turner notes.

Strong US Dollar (USD) rally has scope to extend, potentially breaking above 160.00, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

For the time being, New Zealand Dollar (NZD) is likely to trade in a range between 0.5720 and 0.5805, UOB Group's FX analysts Quek Ser Leang and Lee Sue Ann note.

EUR/GBP trades lower around 0.8660 on Friday at the time of writing, down 0.15% on the day. In the Eurozone, data published on Friday confirm a clear easing in inflationary pressures in Germany.

Bias for Australian Dollar (AUD) has shifted to the upside, but the major resistance at 0.6745 is not expected to come into view.

There is a chance for GBP to test 1.3355; the next support at 1.3315 is likely out of reach for now. In the longer run, outlook for GBP is negative; it could decline to 1.3355, potentially reaching 1.3315, UOB Group's FX analysts Quek Ser Leang and Lee Sue Ann note.

The Japanese Yen drops 0.3% on Friday’s European session, trading right above 158.10 at the time of writing. The pair has pulled back from the 159.45 highs seen earlier this week as Japanese authorities escalated their intervention warnings. 

USD/MXN has broken below its recent consolidation after failing to clear the 50-day moving average, bringing the July 2024 low near 17.60 into focus.

The Aussie Dollar appreciates against its US counterpart for the second consecutive day on Friday, returning to levels above 0.6700 at the time of writing, after bouncing from the 0.6665 area.

EUR/USD has retreated steadily after failing to break above the top of its multi-month range, with the pair now testing the 200-DMA. 1.

EUR/USD is trading right above 1.1600 at the time of writing on Friday, practically flat on the daily chart and on track to complete a three-week lowing streak.

Silver price (XAG/USD) extends its losses for the second successive session, trading around $91.00 during the European hours on Friday.

The Pound Sterling (GBP) trades with caution near its four-week low around 1.3360 against the US Dollar (USD) during the European trading session on Friday.

USD/CAD inches lower after three days of gains, trading around 1.3890 during the European hours on Friday. The technical analysis of the daily chart shows the pair remains within an ascending channel pattern, suggesting a persistent bullish bias.

The NZD/USD pair attracts some buyers near 0.5755 during the early European session on Friday. However, the upside for the pair might be limited in the near term after positive US economic data push out expectations for rate cuts by the US Federal Reserve (Fed).