The US dollar remained broadly weaker in thin holiday trading Friday, pressured by President Trump’s ongoing criticism of Fed Chair Powell. Adviser Kevin Hassett confirmed the White House is examining Powell’s dismissal, heightening market anxiety. Fed officials Daly and Williams maintained cautious stances, acknowledging persistent inflation risks without signaling imminent rate changes.

Euro Holds Gains Near Technical Resistance

EUR/USD settled firmly near session highs at 1.1397, supported by bullish technical signals including a favorable moving-average crossover. Resistance remains strong at the yearly high of 1.1474 and psychological level of 1.15, though solid support is developing near 1.1200. Investors await next week's European flash PMIs and ECB President Lagarde’s remarks for further direction amid ongoing trade uncertainties.

Sterling Maintains Bullish Momentum

GBP/USD traded steadily near the upper end of a tight 1.3262–1.3287 range, extending its rally for the ninth consecutive session. Strong technical indicators, rising futures open interest, and sustained dollar weakness reinforced bullish sentiment. Market focus now shifts to upcoming UK flash PMI data and BoE Governor Bailey’s commentary, especially given heightened expectations of a May rate cut following soft UK inflation figures.

Yen Gains on Risk Aversion, US-Japan Talks Awaited

USD/JPY declined further, touching session lows near 142.13 as dollar softness persisted and caution grew ahead of Japan-U.S. trade negotiations next week. Persistent bearish technical signals point to risks of testing critical support around 141.62 and 140.65 if risk sentiment weakens further.

Aussie Consolidates After Recent Rebound

AUD/USD edged modestly lower to 0.6377, consolidating recent recovery gains. Technical resistance near 0.6390–0.6427, including key Fibonacci levels and the 200-day moving average at 0.6472, has capped advances despite underlying bullish signals. Solid support at 0.6289/83 reflects continued market caution amid global geopolitical uncertainties.

Currencies at close: EUR/USD +0.35%, GBP/USD steady +0.18%, USD/JPY -0.43%, AUD/USD -0.10%, Dollar Index -0.27%.