The upcoming week will be dominated by the European Central Bank’s (ECB) interest rate decision, United Kingdom (UK) inflation and labor market figures, and preliminary global Purchasing Managers Index (PMI) data.

USD/CHF trades with a downside bias on Friday as the Swiss Franc (CHF) outperforms its major peers, while the US Dollar (USD) is little changed. At the time of writing, the pair trades around 0.8074 after reaching 0.8149 earlier this week, its highest level since August 2025.

EUR/USD trades flat on Friday as traders reassess the inflationary impact of surging Oil prices amid escalating tensions in the Middle East, which have disrupted energy supplies through the Strait of Hormuz.

The Pound Sterling retreats during the North American session, down 0.22% against the Greenback, as geopolitical tensions remained high, triggering a jump in Oil prices and heightening fears of a reacceleration of inflation. The GBP/USD trades at 1.3449 after peaking near 1.3480.

AUD/USD trades higher near 0.6980 on Friday, recovering from an initial decline as the US Dollar (USD) loses ground following a mixed batch of United States (US) economic data.

Scotiabank’s Shaun Osborne and Eric Theoret notes GBP/USD is lower on the day and well off its one-year high reached on optimism that incoming PM Burnham will pursue market-friendly policies. Despite late-week slippage, that view remains.

USD/JPY trades flat on Friday, holding near four-decade highs as the Japanese Yen struggles to attract buyers amid persistent headwinds, including higher Oil prices, Japan’s wide interest-rate gap with other major economies and a resilient US Dollar (USD).

USD/CHF trades around 0.8070 at the time of writing on Friday, down 0.22% on the day. The pair remains under pressure as safe-haven demand for the Swiss Franc (CHF) offsets modest support for the US Dollar (USD) following stronger-than-expected US consumer sentiment data.

Scotiabank’s Shaun Osborne and Eric Theoret report EUR/USD trading slightly lower in quiet conditions as markets look ahead to next week’s ECB meeting, with policymakers in a blackout period and implied volatility subdued. They and consensus expect no policy change.

EUR/GBP edges higher on Friday, extending gains for a second consecutive day as traders cover short positions following the midweek sell-off. At the time of writing, the cross trades around 0.8501 but is still on track for a fourth straight weekly loss.

Scotiabank’s Shaun Osborne and Eric Theoret highlight the Canadian Dollar (CAD) as a modest outperformer, with firmer Oil offsetting weak equities and narrowing front-end spreads driving gains. Position adjustment after heavy CAD short-building is adding tailwinds.

USD/CAD trades under pressure on Friday as the Canadian Dollar (CAD) benefits from higher Oil prices, offsetting the US Dollar’s (USD) recovery. At the time of writing, the pair trades around 1.4022, near a one-month low.

NZD/USD declines on Friday, trading around 0.5830 at the time of writing, down 0.19% on the day, as investors seek safe-haven assets following a fresh wave of US strikes against Iran.

The Euro (EUR) records mild losses against the US Dollar (USD) for the second consecutive day on Friday. The EUR/USD pair trades at 1,1430 after being capped at 1.1480 earlier this week, extending the sideways trend, as geopolitical tensions and higher oil prices keep Euro rallies subdued.

TD Securities’ Macro Research team, led by Howard Du with contributions from Jayati Bharadwaj and Linda Cheng, argues that the recent Pound strength versus the Euro has overshot fundamentals.

The British Pound (GBP) extends its decline against the US Dollar (USD) for the second straight day on Friday, trading 0.4% lower to near 1.3427 during the European trading session on Friday.

AUD/USD trades around 0.6970 on Friday at the time of writing, down 0.36% on the day, as the Australian Dollar (AUD) comes under pressure for a second consecutive day amid renewed US Dollar (USD) strength. Despite the latest pullback, the pair is still on track for a third consecutive weekly gain.

The Japanese Yen (JPY) ticks lower for the second consecutive day against the US Dollar (USD), reaching the 162.50 area on Friday, drawing closer to the 40-year low, at 162.84 hit earlier this month.

TD Securities strategists see asymmetric downside risks for the British Pound (GBP) against the Euro (EUR). They argue that EUR/GBP appears notably undervalued relative to rate differentials, data surprises and equity performance.

MUFG’s Derek Halpenny highlights that the Japanese Yen (JPY) remains near cyclical lows, but Government Pension Investment Fund (GPIF) and Japan Trusts flows already show a shift back toward JGBs.

Eurozone Harmonized Index of Consumer Prices (MoM) in line with forecasts (-0.1%) in June

Eurozone Harmonized Index of Consumer Prices (YoY) in line with expectations (2.8%) in June

Eurozone Core Harmonized Index of Consumer Prices (MoM) remains unchanged at 0.2% in June

Eurozone Core Harmonized Index of Consumer Prices (YoY) in line with expectations (2.4%) in June

United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann note USD/JPY has edged higher to around 162.35, with intraday bias tilted modestly to the upside but capped between 162.10 and 162.65.

The USD/CAD pair trades marginally lower at around 1.4033 during the European trading session on Friday. The Loonie pair edges down as the Canadian Dollar (CAD) outperforms its major currency peers amid fears that oil prices could accelerate further.

The US Dollar (USD) has turned lower against the Swiss Franc (CHF) on Friday’s European trading session, after failing to find acceptance above the 0.8100 level, which keeps the immediate bearish structure in place.  The Dollar remains weighed by the soft US inflation figures released earlier this w

The GBP/JPY cross turns lower for the second straight day following an intraday uptick to the 219.00 neighborhood on Friday and retreats further from its highest level since January 2008, touched earlier this week.

The Euro (EUR) trades flat against the US Dollar (USD) at around 1.1445 during the European trading session on Friday. The EUR/USD pair is expected to trade with caution amid continued military aggression between the United States (US) and Iran.

The Euro (EUR) trades higher against the British Pound (GBP) on Friday, returning to levels near 0.8500 from 13-month lows of 0.8455 amid speculation that the European Central Bank (ECB) will hike rates in the coming months.