The Euro (EUR) trades slightly firmer against the Swiss Franc (CHF) on Friday after slipping to over three-week lows in the previous day following the European Central Bank’s (ECB) monetary policy decision.

The Bank of Japan (BOJ) unanimously voted to raise the policy rate 25bps to 0.75% (widely expected) and reinforced its tightening bias.

Today’s decision by the BoJ to hike its policy rate by 25 bps as expected has failed to support the JPY. Indeed, USD/JPY has pushed above the 157.00 level this morning marking its highest levels for almost a month.

EUR/USD languishes near 1.1710 on Friday's US session opening times, down from the three-month highs, above 1.1800, hit earlier this week. The pair is on track to close the week with moderate losses, as the US Dollar picks up against its main peers.

GBP/USD is trading in a tight range around 1.3375 after testing an intra-day high of 1.3446 yesterday.

Pound Sterling (GBP) initially surged following the Bank of England’s (BoE) 25bp rate cut to 3.75%, but gains later eased as markets digested the less dovish-than-expected guidance.

EUR/USD softened to 1.1710 after French PM Lecornu confirmed that Parliament will miss year-end budget approval, forcing a special rollover law.

Gold (XAU/USD) shows limited movement on Friday, as a resilient US Dollar (USD) caps upside momentum. At the time of writing, XAU/USD hovers near $4,321, holding above a daily low of $4,309.

The European Central Bank (ECB) kept policy rates unchanged, reinforcing its flexible, data-dependent stance. While not committing to a hike, President Lagarde emphasized that all options remain on the table, supporting expectations that the easing cycle may have ended.

Mexico Private Spending (YoY) climbed from previous -0.4% to 1.4% in 3Q

Mexico Private Spending (QoQ) increased to 1.1% in 3Q from previous -0.4%

US Dollar (USD) recovered to a seven-day high, outperforming mostly against Japanese Yen (JPY). We are sticking to our view that relative monetary policy remains a drag for USD. The Fed has room to deliver more rate cuts while most other major central banks are done easing.

The Australian Dollar posts marginal losses against the USD in a calm trading session on Friday.

The Pound Sterling (GBP) trades higher against its major peers in Friday's European session despite data from the United Kingdom (UK) showing that Retail Sales unexpectedly declined in November.

US Dollar (USD) fell post CPI report but subsequently retraced losses as markets skepticisms about CPI report grew. DXY was last seen around 98.69 levels. Inflation eased unexpectedly in Nov, with headline and core CPI at 2.7% and 2.6% (vs. 3.1% and 3% expected) respectively.

The Indian Rupee (INR) gains sharply against the US Dollar (USD) during late trading hours in India on Friday. The USD/INR pair plunges over 1% to near 89.50 as the Reserve Bank of India (RBI) has intervened to support the Indian Rupee

India FX Reserves, USD increased to $688.95B in December 8 from previous $687.26B

European Central Bank (ECB) policymaker and the current governor of the Central Bank of Latvia, Mārtiņš Kazāks, said during the European trading session that the consumer inflation expectations remain well-anchored.

Russian leader Vladimir Putin said during European trading hours on Friday that United States (US) President Donald Trump is making efforts to end the war in Ukraine.

United States (US) President Donald Trump said in a telephonic interview with NBC on Friday that the possibility of a war with Venezuela remains on the table, according to NBC.

Russia Interest Rate Decision meets forecasts (16%)

EUR/NOK edged lower following Norges Bank’s policy update, as the revised rate path disappointed market expectations.

The US Dollar (USD) is proving surprisingly resilient despite the release of a very soft US November CPI reading yesterday. It may be that the numbers seem too good to be true, which prevented a bigger reaction in FX and interest rate markets.

Italy Industrial Sales n.s.a. (YoY): 1.7% (October) vs previous 3.4%

Italy Industrial Sales s.a. (MoM) down to -0.5% in October from previous 2.1%

The Bank of England’s (BoE) 25bp rate cut to 3.75% came with a cautious message, limiting dovish surprise and offering modest support to sterling despite slowing growth and still-elevated inflation, Commerzbank's FX analyst Norman Liebke notes.

The Pound Sterling (GBP) gained modest support after a less-dovish Bank of England (BoE) message, but expectations of further rate cuts in early 2026 should keep EUR/GBP underpinned near 0.87, ING's FX analyst Chris Turner notes.

The Bank of Japan (BoJ) raised rates to a 30-year high and signaled further hikes, but the yen weakened as markets judged the tightening path too slow to drive a near-term Japanese Yen (JPY) rebound, Commerzbank's FX analyst Volkmar Baur notes.

European Central Bank (ECB) policymaker and Finnish central bank governor Olli Rehn said during European trading hours that the outlook for the Eurozone’s growth and inflation remains highly uncertain due to the trade war that has just begun, and geopolitical tensions.

EU leaders secured a €90bn loan package for Ukraine, a market-friendly outcome for the Euro (EUR), as EUR/USD drifts toward support near 1.1680 with range trading likely to persist, ING's FX analyst Chris Turner notes.