Spot gold slipped below $4,090/oz, down 0.33% intraday.

Derek Halpenny at Mitsubishi UFJ said in a note that if the Bank of England’s rate decision strengthens market expectations of a September rate hike, the pound could appreciate. He warned the BOE may express greater concern about spillovers from the Middle East conflict; prolonged energy-price rises now look a larger risk than at June’s meeting and could "certainly force the Bank of England to act, even with mixed labour market conditions." Markets currently price roughly a 50% probability of a September hike.

Mitsubishi UFJ Financial Group analysts said expectations of further Japanese intervention could cap yen declines versus the dollar. After suspected intervention on Thursday, the Japanese Ministry of Finance often conducts a second intervention, so markets may be cautious about additional dollar-buying/yen-selling; nonetheless, dollar-buying pressure could return quickly and remains a risk. The Bank of Japan on Friday left rates unchanged and signaled it "lacked a firm stance" on whether to speed up tightening. USD/JPY briefly plunged on Friday then recovered, erasing intraday losses.