Deutsche Bank strategists Jim Reid and colleagues note that a softer US jobs report reduced expectations for further Federal Reserve tightening in 2026, with just 30 bps of hikes priced by December.

Italy Retail Sales n.s.a (YoY) increased to 2.2% in May from previous 1.6%

Italy Retail Sales s.a. (MoM) came in at 0.2%, above expectations (0.1%) in May

EUR/CAD gains ground for the second successive day, trading around 1.6230 during the European hours on Friday. The currency cross appreciates as the Euro (EUR) rises ahead of the release of HCOB Purchasing Managers’ Index (PMI) data from Germany and the Eurozone later in the day.

Wells Fargo Economics, led by Tom Porcelli and colleagues, expects the June FOMC minutes to clarify what might push a divided Committee toward further tightening, but still sees the Federal Reserve keeping the funds rate unchanged.

Japan's Chief Cabinet Secretary Minoru Kihara reiterates, during the European session on Friday, that the administration is closely monitoring FX moves and is ready to intervene when needed. Kihara also said on Tuesday that officials are always ready to take the necessary action on forex.

Spain HCOB Services PMI came in at 54.2, above expectations (50.9) in June

Turkey Exports up to $24.94B in June from previous $22.5B

Turkey Consumer Price Index (MoM) in line with expectations (0.99%) in June

Turkey Consumer Price Index (YoY) came in at 32.11%, above forecasts (32.1%) in June

Spain Industrial Output Cal Adjusted (YoY): 3.4% (May) vs 2%

Deutsche Bank’s Jim Reid and team report a rebound in Asian equities, led by a sharp rise in the KOSPI and Samsung Electronics on AI chip news, alongside gains in Chinese and Australian indices.

France Industrial Output (MoM) registered at -0.1% above expectations (-0.4%) in May

USD/JPY holds its position after experiencing volatility, trading around 161.10 during the Asian hours on Friday. The pair may depreciate as the Japanese Yen (JPY) could strengthen on rising speculation that Japanese officials are preparing another round of currency intervention.

Russia S&P Global Services PMI dipped from previous 48.7 to 48.2 in June

Asian stock markets reflect strong demand on Friday, as traders reconsidering hawkish Federal Reserve (Fed) bets and lower oil prices due to easing geopolitical woes have lifted demand for risk-sensitive assets.

The final reading of India's HSBC Composite Purchasing Managers Index (PMI) was revised down to 57.1 in June from the previous reading of 57.4, the latest data published by S&P Global and HSBC Bank showed on Friday. This figure came in worse than the estimates of 57.4.

India HSBC Composite PMI registered at 57.1, below expectations (57.4) in June

India HSBC Services PMI came in at 57.4, below expectations (58) in June

Gold prices rose in India on Friday, according to data compiled by FXStreet.

USD/IDR gains ground after registering minor losses in the previous day, trading around 18,000 during the Asian hours on Friday. The pair appreciates as the US Dollar (USD) holds its position despite a disappointing set of domestic labor data released on Thursday.

China's Services Purchasing Managers' Index (PMI) declined to 54.1 in June from 54.4 in May, the latest data published by RatingDog showed on Wednesday.  

China RatingDog Services PMI fell from previous 54.4 to 54.1 in June

Japan’s Finance Minister Satsuki Katayama said on Friday that officials are ready to act appropriately on currency fluctuations. However, Katayama decllined to comment on specific currency levels.

Japan Jibun Bank Services PMI came in at 52.2, above expectations (51.8) in June

Ireland AIB Services PMI: 54.2 (June) vs 50.8

Australia S&P Global Composite PMI came in at 50.4, above expectations (49.8) in June

Australia S&P Global Services PMI came in at 50.5, above forecasts (49.9) in June

New Zealand ANZ – Roy Morgan Consumer Confidence: 91.3 (June) vs 86.5

BNY’s Geoff Yu argues that current CNY strength has strategic value as China boosts imports of semiconductors from Japan, South Korea and Taiwan. He notes that renminbi gains versus NA-3 (JPY, KRW ve TWD), USD and EUR weaken any U.S./EU case on Chinese currency undervaluation.