FXStreet

Michael Pfister at Commerzbank highlights that the Bank of England (BoE) delivered a hawkish rate hike, with unanimous support for tightening and one member backing a larger move. Governor Andrew Bailey signalled more hikes are likely, but gave no timetable.

Ripple (XRP) remains structurally capped near $1.20 after selling pressure wiped out the early-week rise to $1.34, driven by the United States (US) midterm elections.

MUFG analysts Khang Sek Lee and Lin Li note that the recent tech-led equity selloff has undermined Asia FX, offsetting support from lower Oil prices and US yields. Safe-haven demand has lifted the Dollar and Japanese Yen, while upcoming US Nonfarm Payrolls data could reinforce expectations of further Fed tightening, adding pressure on Asia FX, particularly tech-sensitive currencies like TWD and KRW.

ING’s Chris Turner notes that the US Dollar (USD) has reacted only modestly to the sharp sell-off in US tech stocks, with FX markets treating it as a sector-specific story.

Bank of England (BoE) Chief Economist Huw Pill said on Friday that "nothing is baked in" for interest rates next year, adding that he expects the outlook to become more uncertain from spring, per Reuters.

The US Dollar (USD) is showing the strongest performance among major currencies on Friday, amid a mix of risk-aversion, following a tech-led rout in equity markets, and investors’ hopes of a strong US Nonfarm Payrolls (NFP) report later in the day.

Commerzbank’s Antje Praefcke notes that Norges Bank kept its policy rate at 4.50% and maintained a ‘high for longer’ stance, leaving the door open to another hike, potentially in December.

EUR/GBP trades flat on Friday, consolidating within the tight range seen so far this week. The subdued price action suggests bears are taking a breather after five consecutive weekly losses that pushed the cross into oversold territory.

The New Zealand Dollar (NZD) is falling sharply on Friday as the US Dollar (USD) outperforms its major currency peers amid the risk-off mood and market expectations of a strong US Nonfarm Payrolls (NFP) report later in the day.

DBS Group Research’s Philip Wee notes that the Dollar failed to benefit from the latest risk-off episode as US Treasury yields and Fed hike expectations fell. He highlights that the DXY Index was flat despite an equity rout, with investors reassessing the need for further tightening.

Christopher Wong at OCBC explains that Asian FX performance is diverging following US midterms. Lower Oil prices and softer US Treasury yields are seen as supportive for THB, PHP and INR, while ongoing AI and tech equity weakness and foreign outflows may pressure KRW and TWD. Markets are watching US yields and payrolls for further direction.

Bitcoin (BTC) remains under pressure, down over 3% this week, trading near $75,500 on Friday and heading for its fifth straight weekly loss.

The Australian Dollar (AUD) faces intense selling pressure against the US Dollar (USD) on Friday. In the European trade, the AUD/USD pair posted a fresh seven-month low at 0.6862.

Chris Turner at ING describes the Euro’s recent performance as unimpressive, with EUR/USD failing to benefit from the US tech sell-off. He argues that European investors are keeping cash in Dollars and that familiar safe-haven correlations with US Treasuries have returned.