Here is what you need to know for Friday, July 31:

The US Dollar (USD) falls sharply during the American session on Thursday after United States economic growth missed expectations and underlying inflation moderated. Additional pressure comes from a sudden surge in the Japanese Yen (JPY), which fuels speculation that Japanese authorities intervened in the foreign exchange market.

The US Dollar Index (DXY) declined around 0.8% and trades near 100.00, falling below the psychological 100.00 level. Preliminary US Gross Domestic Product expanded at an annualized rate of 1.5% in the second quarter, below the 2.1% market forecast. Core Personal Consumption Expenditures inflation rose only 0.1% MoM in June, compared with expectations of 0.2%, while the annual rate eased to 3.3% from 3.4%.

US data were not entirely weak, as Initial Jobless Claims came in at 197K, below the expected 200K. The GDP Price Index also surged 6.3%, well above the 3.6% forecast, suggesting that inflationary pressures remain elevated despite slower economic growth.

EUR/USD advances around 0.5% and trades near 1.1530, reaching its highest level in several weeks. Eurozone GDP expanded 0.4% QoQ in the second quarter, twice the expected 0.2%, while annual growth accelerated to 1.0%. Spain led the regional expansion with quarterly growth of 0.7%, while Germany, France and Italy each grew 0.2%. German annual inflation also accelerated to 2.8%, supporting expectations that the European Central Bank will remain cautious about further monetary easing.

GBP/USD rises around 0.8% and trades near 1.3470 after the Bank of England delivered a hawkish hold. The BoE maintained its Bank Rate at 3.75%, but three policymakers voted for a 25-basis-point increase, compared with expectations for two. The 6–3 decision indicated that concerns about persistent inflation remain significant among Monetary Policy Committee members.

USD/JPY plunges around 2.4% and trades near 159.50 as the Japanese Yen strengthens abruptly across the market. The speed and scale of the movement raise speculation that Japan’s Ministry of Finance instructed the Bank of Japan to purchase Yen, although the operation has not been officially confirmed. Investors will closely monitor comments from Japanese authorities ahead of Friday’s BoJ policy announcement.

AUD/USD surges around 1.1% and trades near 0.7030, moving above the 0.7000 psychological level. The Australian Dollar benefits from broad Greenback weakness and improved demand for risk-sensitive currencies following the softer US growth and monthly inflation figures.

West Texas Intermediate (WTI) Oil falls around 0.7% and trades near $84 per barrel. Crude prices struggle to retain their recent gains as concerns about slower US economic growth offset continued geopolitical uncertainty and potential risks to Middle Eastern energy supplies.

Gold rises around 1.1% and trades near $4,113 per troy ounce, supported by the weaker US Dollar and softer core PCE reading. Silver outperforms, gaining almost 3% and climbing toward $59.20 per ounce as demand for precious metals strengthens.

On Friday, the Bank of Japan is expected to keep its interest rate unchanged at 1%. Attention will focus on the Monetary Policy Statement, quarterly Outlook Report and press conference for signals about further rate increases and comments regarding the Yen’s sudden appreciation.

The European calendar will feature preliminary Eurozone inflation data. Core Harmonized Index of Consumer Prices inflation is expected to remain at 2.4% YoY, while headline inflation is forecast to accelerate to 2.9% from 2.8%. Germany will publish unemployment figures, while France and Italy will release preliminary inflation data.

In the United States, the Employment Cost Index is expected to rise 0.8% in the second quarter. Investors will also monitor the Chicago PMI, final Michigan Consumer Sentiment and one-year and five-year consumer inflation expectations. Canada will publish monthly GDP, which is forecast to grow 0.2% in May.