USD Modestly Higher, Central Bank Speak Dominates Later

The USD BBDXY index sits marginally higher for the session, last near 1254, up nearly 0.10%. We are away from best levels for the USD, but have recouped some of Thursday's losses.

• USD/JPY was weaker in the first part of trade, but found support sub 155.30. Better household spending data may have helped yen at the margins, however, the market remains in buy on dip mode for the pair. We last sat near 155.70/75, around 0.15% weaker in yen terms.
• The pair looks too high relative to weaker US-JP yield differentials but a generally positive equity backdrop (ex China) is providing some offset.
• AUD and NZD are both weaker, albeit up from session lows. AUD/USD was around 0.6605/10 in latest dealings, off 0.20%. Dips to 0.6600 saw support. NZD/USD was off by a similar amount to 0.6020/25.
• Headlines around potentially fresh US tariffs (which could be announced next week) has likely weighed on China stocks, while USD/CNH has firmed back towards 7.2300. Both factors likely curbing appetite for AUD and NZD at the margin.
• Looking ahead, focus turns to the prelim Q1 UK GDP release, industrial and manufacturing numbers ahead of the Canadian jobs report for April and the prelim University of Michigan sentiment release. Central bank speak remains thick and fast, with appearances from ECB's Cipollone & Elderson, BoE's Pill & Dhingra and Fed's Bowman, Logan, Kashkari, Goolsbee and Barr.