U.S. Dollar Heads Into Weekend on Softer Footing

The U.S. dollar is heading into the weekend on a softer footing, with the exception of USD/JPY.

Hawkish commentary from European Central Bank Executive Board member Sabine Lautenschlaeger provided fodder for EUR/USD bulls, which now rallied over a big figure form Thursday’s 1.1837 low, while Bank of England Monetary Policy Committee member Gertjan Vlieghe’s remark that a rate hike could be seen “as early as in the coming months” provided rocket fuel for cable, which lunched above 1.3600 for the first time in 15 months.

The biggest movers have been the yen crosses, with GBP/JPY leading the way with a whopping 2.2% gain on the day so far. EUR/JPY is up by 1.2% and USD/JPY by 0.9%.

Action Economics said that the hawkish shifts in Europe, aside from the Swiss National Bank’s case, is leaving yen exposed to the Bank of Japan’s committed dovish stance, with the Japanese currency weakening Friday even despite a new North Korea missile launch and terrorist incident in London.

Ahead, the U.S. calendar brings August retail sales, industrial production, July business inventories and preliminary September consumer sentiment.

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