The USD/CNH pair recovers some lost ground to near 0.8505 during the early European session on Friday. The Chinese Yuan (CNH) weakens against the US Dollar (USD) as China moves to rein in the currency’s strength by scrapping an extra fee for betting against it in the derivatives market.

Finance Minister Satsuki Katayama said that Japan is monitoring the Japanese Yen’s (JPY) slide “with a strong sense of urgency” and is in close communication with the US, Reuters reported on Friday.

West Texas Intermediate (WTI) Oil price loses ground after registering little gains in the previous session, trading around $65.00 per barrel during the Asian hours on Friday.

Oman's Foreign Minister, Badr al-Busaidi, said that talks between the United States (US) and Iran on nuclear issues have made "significant progress,” Reuters reported on Thursday.

The People's Bank of China (PBOC), China’s central bank, announced on Friday that it will cut the foreign exchange risk reserve ratio from 20% to 0%, starting March 2.

Australia Private Sector Credit (MoM) registered at 0.5%, below expectations (0.7%) in January

The EUR/USD pair trades on a flat note near 1.1800 during the early Asian session on Friday. The pair steadies as softer Eurozone inflation offsets US tariff uncertainties.

Australia Private Sector Credit (YoY): 7.7% (January)

United Kingdom GfK Consumer Confidence came in at -19 below forecasts (-15) in February

Japan Large Retailer Sales up to 3% in January from previous 2%

Japan Retail Trade s.a (MoM) increased to 4.1% in January from previous -2%

Japan Industrial Production (YoY) down to 2.3% in January from previous 2.6%

Japan Retail Trade (YoY) came in at 1.8%, above forecasts (-0.4%) in January

Japan Industrial Production (MoM) came in at 2.2% below forecasts (5.3%) in January

Japan Foreign Investment in Japan Stocks: ¥402B (February 20) vs previous ¥1424.2B

BNY’s Head of Markets Macro Strategy Bob Savage highlights USD/SGD as the weakest non-carry pair over the past month, with sustained net selling pressure. However, the last two sessions have seen softer outflows, suggesting momentum is turning.

Japan Tokyo CPI ex Fresh Food (YoY) above forecasts (1.7%) in February: Actual (1.8%)

Japan Tokyo Consumer Price Index (YoY): 1.6% (February) vs 1.5%

Japan Tokyo CPI ex Food, Energy (YoY): 1.8% (February) vs previous 2%

Brown Brothers Harriman’s (BBH) Elias Haddad notes the Dollar is mixed within a multi‑month range while USD/CNH continues to grind lower, reaching its weakest level since March 2023. The bank sees further downside potential as a stronger Yuan supports China’s shift toward consumption-led growth.

Statistics Bureau of Japan will publish its data for February on Friday at 23.30 GMT. The Tokyo CPI measures the price fluctuation of goods and services purchased by households in the Tokyo region, excluding fresh food, whose prices often fluctuate depending on the weather.

Standard Chartered economists Carol Liao and Shuang Ding expect China to set a 2026 GDP growth target of 4.5–5.0% at the National People’s Congress, slightly below 2025.

New Zealand ANZ – Roy Morgan Consumer Confidence dipped from previous 107.2 to 100.1 in February

DBS Group Research economist Chua Han Teng notes that the Bank of Thailand surprised markets with a 25bps rate cut to 1.00% at its first 2026 meeting, following earlier easing since October 2024.

Federal Reserve (Fed) President of the Bank of Chicago, Austan Goolsbee, said interest rates can come down, but they don't want to front-load before inflation eases. He also added he wants the Fed to be careful in a Fox News Interview on Thursday.

ABN AMRO economists Jan-Paul van de Kerke and Max Raatjes report that stronger-than-expected Dutch GDP in Q4 2025 and solid momentum into 2026 have led them to upgrade growth forecasts.

Nordea’s Group Chief Economist Helge J. Pedersen notes that Prime Minister Mette Frederiksen has called a Danish parliamentary election for Tuesday, March 24. The current three-party government of the Social Democrats, Venstre and the Moderates is unlikely to remain unchanged.

United States 7-Year Note Auction dipped from previous 4.018% to 3.79%

ING analysts Frantisek Taborsky and David Havrlant say Czech fiscal policy has loosened only marginally after the election, with the public finance deficit seen at 2.2% of GDP in 2026 and risks tilted higher.

UOB’s Global Economics & Markets Research expects Bank of Korea to keep the base rate at 2.50% throughout 2026, after a sixth consecutive hold in February.