USD/JPY treads water near 160.00 on Friday as the risk of Japanese intervention limits gains despite a stronger US Dollar (USD).

The Euro (EUR) extends losses on Friday as mixed Eurozone macroeconomic data failed to offset the broad US Dollar's (USD) strength, with US Treasury yields surging amid speculation of a large Federal Reserve (Fed) rate hike next month.

Societe Generale’s Kenneth Broux notes that robust UK GDP and services growth are keeping pressure on the Bank of England (BoE) to hike again, with OIS implying three more moves. Despite this, GBP/USD has reversed sharply.

The AUD/USD pair extends the decline to near 0.6785 during the early European trading hours on Friday. Growing bets of a half-point Federal Reserve (Fed) rate hike provide some support to the US Dollar (USD) against the Australian Dollar (AUD).

The EUR/JPY cross trades in positive territory around 176.85 during the early European session on Friday. Traders remain on high alert for currency intervention from Japanese authorities to prop up the Japanese Yen (JPY).

USD/CAD is little changed on Thursday, holding near a one-month high. A broadly stronger US Dollar (USD) and diverging interest rate expectations for the Federal Reserve (Fed) and the Bank of Canada (BoC) keep the Canadian Dollar (CAD) on the back foot.

ING’s Francesco Pesole highlights that divergent central bank rhetoric between the Federal Reserve and European Central Bank is weighing on the Euro against the Dollar. Wider two-year swap differentials favour USD, leaving EUR/USD at risk of testing 1.100 in coming days. ING expects that level to offer solid support, arguing a decisive break below 1.100 would likely require markets to price a 50bp Fed hike in December.

The USD/CAD pair gains momentum to around 1.4260 during the early European trading hours on Thursday. Falling crude oil prices exert some selling pressure on the commodity-linked Canadian Dollar (CAD) against the US Dollar (USD).

Silver (XAG/USD) edges lower following the previous day's two-way price swings, retesting the weekly trough around the $51.20-$51.15 area, during the Asian session on Thursday.

The US Dollar (USD) has pushed harder, reaching levels last seen in April 2025 on the back of persistent bets over another interest rate hike by the Federal Reserve at its December gathering.