United Kingdom Consumer Inflation Expectations increased to 4% from previous 3.2%

United Kingdom Consumer Inflation Expectations: 3.5% vs 3.2%

Iran’s Mehr news agency has reported in the European trade on Friday that the draft with the United States (US) regarding the permanent peace deal needs finalization by relevant authorities.

MUFG’s Lee Hardman reports that renewed optimism over a US-Iran deal has lifted the Euro against the Dollar, with EUR/USD moving back toward 1.1600.

The Japanese Yen (JPY) is giving away previous gains against the US Dollar (USD) on Friday, with the USD/JPY pair returning to levels above 160.00, widely considered as the limit of tolerable yen weakness for Japanese authorities.

European Central Bank (ECB) Governing Council member Martin Kocher stated in the European trade on Friday that it is too early to discuss what the central bank will do in the July meeting.

Societe Generale’s Kenneth Broux and colleagues note Brent has fallen below $90 per barrel after US-Iran deal hopes and President Trump’s cancelled strikes. Their technical view highlights a sustained downtrend after losing the 50-DMA and breaking an ascending trend line.

The GBP/JPY cross regains positive traction following the previous day's good two-way price moves and sticks to intraday gains through the first half of the European session on Friday.

European Central Bank (ECB) Governing Council member and Governor of the Central Bank of Ireland, Gabriel Makhlouf, said during the European trade on Friday that the central bank needs to act quickly before inflation starts accelerating further.

The Japanese Yen (JPY) continues to face substantial downside pressure, trading at highly elevated levels against the US Dollar and crossing historical intervention-trigger points.

The Euro (EUR) trades higher 0.12% higher to near 185.45 against the Japanese Yen (JPY) during the European trading session on Friday.

Commerzbank’s Charlie Lay and Moses Lim note that the Indian Rupee has weakened sharply versus the Dollar in 2026 on higher Oil prices, portfolio outflows and a stronger USD.

USD/CHF rebounds after registering modest losses in the previous day, trading around 0.7960 during the European hours on Friday. The technical analysis of the daily chart indicates the pair is remaining within the ascending channel pattern, signaling an ongoing bullish bias.

Deutsche Bank strategists note a strong rally in US equities, with the S&P 500 posting its largest gain in two months as falling Oil prices and reduced Fed hike expectations improved the near-term outlook.

Dow Jones futures remain steady around 50,880 during the European hours on Friday, ahead of the US regular opening. However, S&P 500 futures inch lower 0.09% to near 7,390, and Nasdaq 100 futures lose 0.29 %, trading near 29,380 at the time of writing.

The Euro (EUR) is trading moderately lower against the US Dollar (USD) on Friday, changing hands at 1.1565 at the time of writing, down from the weekly highs, at 1.1590 hit on Thursday.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note that USD/JPY’s brief spike to 160.69 followed by a drop to 159.64 has left the intraday outlook mixed, with trading expected between 159.70 and 160.40.

Turkey Current Account Balance: $-5.695B (April) vs $-9.672B

Spain Consumer Price Index (MoM) meets forecasts (0.1%) in May

Spain Harmonized Index of Consumer Prices (MoM) meets expectations (0.1%) in May

Spain Harmonized Index of Consumer Prices (YoY) meets forecasts (3.6%) in May

Spain Consumer Price Index (YoY) meets forecasts (3.2%) in May

The NZD/USD pair attracts some sellers to around 0.5820 during the early European trading hours on Friday. The US Dollar (USD) edges higher against the New Zealand Dollar (NZD) on hot US Producer Price Index (PPI) inflation data.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is holding gains after registering modest losses in the previous day and trading around 99.80 during the early European hours on Friday.

ING analysts Warren Patterson and Ewa Manthey say Brent has fallen below $90/bbl on renewed hopes for a ceasefire and resumption of energy flows through the Strait of Hormuz.

France Inflation ex-tobacco (MoM) fell from previous 1% to 0.1% in May

France Consumer Price Index (EU norm) (YoY) in line with expectations (2.8%) in May