FXStreet

St. Louis Federal Reserve (Fed) President Alberto Musalem said on Friday that “people remain concerned about inflation at the current level,” adding that inflation expectations remain anchored.

Standard Chartered’s Aldian Taloputra reports Indonesia’s Q3 GDP grew 5.5% year-on-year, up from 5.2% in Q2, driven by household consumption, investment and exports. Energy subsidies and social spending helped sustain consumer purchasing power despite higher Oil prices. The bank maintains its 2026 GDP forecast at 5.3%, but notes upside risks from strong year-to-date growth and resilient household spending.

ING economists David Havrlant and Frantisek Taborsky review the Czech National Bank’s 25bp hike to 4%, decided on a narrow 4–3 vote. They highlight stronger inflation and softer growth in the CNB forecast, with 4% seen as a neutral level. The authors expect further hikes to be constrained by weakening economic activity and question the steep rate-cut path embedded in CNB projections.

ABN AMRO analyzes overlapping supply-side shocks, including energy, food and supply bottlenecks, that are pushing Eurozone inflation higher.

USD/CAD accelerates its rally on Friday, gaining 0.78% to trade around 1.4120 at the time of writing, as stronger-than-expected United States (US) employment figures boost the US Dollar (USD), while disappointing Canadian labour market data weigh on the Canadian Dollar (CAD).

EUR/USD slips on Friday, erasing all gains recorded this week as stronger-than-expected US Nonfarm Payrolls (NFP) data boosts demand for the US Dollar (USD). At the time of writing, the pair trades around 1.1132, down 0.77% on the day.

ING’s Frantisek Taborsky says the Czech National Bank’s dovish signal contrasts with expectations for at least two more rate hikes and a hawkish repricing. He sees EUR/CZK trading in a 24.350–24.400 range, supported by seasonal koruna strength despite renewed upward pressure.

Chris Turner at ING highlights Banxico’s surprise 3-2 vote to cut its policy rate to 6.25%, narrowing the Banxico-Fed spread to 225bp, the lowest in decades. He notes Banxico’s focus on weak Mexican growth and a negative output gap, with limited concern about Peso-driven inflation. Turner argues this stance leaves the Peso exposed to external risk, making a move in USD/MXN above 19 more likely than not.

GBP/JPY trades with a mild bearish bias on Friday as investors favour the safe-haven Japanese Yen (JPY) over the British Pound (GBP) amid a deepening AI-led stock-market rout.