The Bank of Japan will announce its decision at Ueda's first meeting; market participants will pay close attention to the details. In addition, Australia will release its report on wholesale inflation, and Japan will publish several reports. Later in the day, the focus will shift to the Eurozone, where GDP and inflation figures will be released.

Here is what you need to know on Friday, May 5:

On Thursday, Wall Street had its best day in a week, with the Dow Jones gaining 1.57% and the Nasdaq 2.43% boosted by earnings reports. Meta Platforms surprised and jumped almost 14% on Thursday. More earnings are coming on Friday from companies such as Exxon Mobil, Chevron, PetroChina, China Construction Bank, Sony and Mercedes-Benz. 

The improvement in market sentiment favored currencies like AUD, NZD and CAD, while weakening CHF, JPY and the US Dollar. US yields rose sharply, driven more by risk sentiment than by monetary policy expectations. 

US real GDP increased by 1.1% during the first quarter, below the 2% of markets consensus. On the positive side, Jobless Claims dropped more than expected. Pending Home Sales tumbled 5.2% in March. On Friday, the US will report Fed’s preferred inflation measure: the Core Personal Consumption Expenditures Price Index.

We continue to forecast that the U.S. economy to slip into recession, which we expect will be of moderate severity, in the second half of the year.

The Japanese Yen was among the worst performers on Thursday amid higher yields. USD/JPY rose to 134.15 and then pulled back.

The Bank of Japan (BoJ) will announce its monetary policy decision, the first under Kazuo Ueda. No change is expected; however, comments or signs about the future path can have a significant impact. The BoJ will release new macro forecasts.  Japan will report Unemployment, Tokyo inflation, Retail Trade, Industrial Production and Housing Starts.