The dollar is trading on the softer side in European morning trade on Friday, nudging lower despite an absence of any major catalysts. The decline comes amid a mixed mood in broader markets, which is not giving traders a consistent look in the final stretch of the week.

USD/JPY is down 0.2% at 159.13, though the pair remains in that vicinity and is on track to end the week above the 159.00 level, up roughly 0.8% over the period. That keeps the pair in territory where Japanese authorities have already shown a willingness to act, having stepped in to support the yen on several occasions in April and May 2024 as USD/JPY climbed toward the 160 mark. Meanwhile, EUR/USD is up 0.2% at 1.1553 and is now flat on the week. The pair continues to hold near its 100-day moving average (red line) but keeps below it, with buyers not yet finding the right trigger for a technical break. Moving averages of this length are among the most widely watched trend gauges in FX, typically treated as a dividing line between medium-term upside and downside momentum, which is why the pair's repeated approach from below is significant for its technical outlook.

[EUR/USD daily chart]

Elsewhere among the majors, GBP/USD is up 0.3% at 1.3520 and AUD/USD is up 0.2% at 0.7070, as high-beta currencies — those, like the commodity-linked aussie, that tend to be more sensitive to swings in global risk appetite — look to at least close the week a touch higher against the dollar. The moves are modest, but they point to some mixed performances among major currencies this week, after the US CPI report on Wednesday failed to give traders any firm convictions. That release is one of the most market-moving items on the US data calendar because it feeds directly into expectations for Federal Reserve policy, and by extension the dollar, so the muted follow-through reflects how inconclusive the print left the rate debate.

The mixed picture extends beyond the major currency space. Oil prices are moving back up today, with WTI crude up 1.2% at $82.25, while 10-year yields in the US are 2 basis points higher at 4.66%. Higher US yields ordinarily support the dollar by lifting the return on dollar-denominated assets, and the fact that the dollar is the one moving lower today despite that backdrop points to some mixed signals as the week draws to a close.

In the equities space, European indices are holding more mixed today while US futures are looking rather tepid. That follows the more positive showing on Wall Street yesterday, after the S&P 500 posted a record close. S&P 500 futures are up only 0.1% today, with Nasdaq futures up 0.2%, though it is still early in the day. Heading into the weekend, the markers that framed the week remain the ones in focus: whether EUR/USD can finally clear its 100-day moving average, and whether USD/JPY holds its footing above 159.00.