The USD/JPY pair trades in a muted fashion toward the 159.20 region on Friday as the United States Dollar (USD) finds support following the latest inflation data, while the Japanese Yen (JPY) remains pressured amid uncertainty surrounding the Bank of Japan’s (BoJ) policy outlook.

The EUR/USD edges up by 0.12% as the Greenback drops amid hostilities in the Middle East, while a US-Iran deal is pending approval by the White House and senior Iranian officials. At the time of writing, the EUR/USD trades at 1.1664.

USD/CAD reverses its intraday gains on Friday as a softer US Dollar (USD) helps the Canadian Dollar (CAD) recover from weakness driven by softer-than-expected Gross Domestic Product (GDP) figures.

The AUD/USD pair advances toward the 0.7180 region on Friday as the United States (US) Dollar (USD) remains under pressure amid improving market sentiment linked to renewed hopes for a longer-lasting ceasefire agreement between the US and Iran.

GBP/JPY trims part of its earlier intraday losses on Friday as the British Pound (GBP) draws support from hawkish remarks by Bank of England (BoE) Governor Andrew Bailey. At the time of writing, the cross trades around 214.15 after recovering from an intraday low of 213.59.

Brown Brothers Harriman reports that USD/JPY is trading directionless above 159.00 after Japan’s Ministry of Finance conducted record-sized FX intervention to cap the pair around 160.00.

Germany Consumer Price Index (YoY) came in at 2.6%, below expectations (2.8%) in May

Germany Harmonized Index of Consumer Prices (YoY) came in at 2.7%, below expectations (2.8%) in May

Germany Harmonized Index of Consumer Prices (YoY) came in at 2.6%, below expectations (2.8%) in May

Germany Consumer Price Index (MoM) below expectations (0.1%) in May: Actual (-0.2%)

Germany Harmonized Index of Consumer Prices (YoY) came in at 2.7% below forecasts (2.8%) in May

Germany Harmonized Index of Consumer Prices (MoM) below expectations (0.2%) in May: Actual (-0.1%)

The NZD/USD pair trades 0.55% higher to near 0.5967 during the European trading session on Friday and is up 2% so far this week.

The Euro (EUR) holds moderate losses against the US Dollar (USD) on Friday, with price action trapped within the last two weeks’ trading range, below 1.1660.

Brown Brothers Harriman highlights that the New Zealand Dollar (NZD) is outperforming, with NZD/USD approaching the 0.6000 resistance as New Zealand business sentiment improves and RBNZ Assistant Governor Silk signals all options, including a 50 bps hike, are on the table for July.

DBS strategist Philip Wee notes markets have strong expectations that the European Central Bank will hike at its next meeting, even as the Federal Reserve (Fed) debates internal reforms.

ING’s Francesco Pesole notes that the Canadian Dollar remains a G10 laggard despite a pause, with short‑term rate differentials and global equities driving USD/CAD.

The British Pound (GBP) drifts lower against the US Dollar (USD) on Friday, reaching session lows at 1.3408 so far, on track for a moderate weekly decline.

The AUD/USD pair attracts fresh sellers on Friday, stalling the previous day's goodish recovery move from sub-0.7100 levels or a one-week low.

The Euro (EUR) has snapped a five-day winning streak against the Japanese Yen (JPY) on Friday, as comments by Japanese authorities regarding Yen speculation have put investors on their toes.

The EUR/USD pair trades subduedly at around 1.1640 during the European trading session on Friday.

The US Dollar (USD) is trading flat against the Swiss Franc (CHF) on Friday, attempting to hold above 0.7830 after rejection at the 0.7900 area on Thursday.

Germany North Rhine-Westphalia CPI (MoM): -0.2% (May) vs previous 0.4%

Germany Brandenburg CPI (MoM) declined to -0.1% in May from previous 0.6%

Germany Brandenburg CPI (YoY) fell from previous 2.9% to 2.8% in May

Germany North Rhine-Westphalia CPI (YoY) declined to 2.4% in May from previous 2.7%

Germany Hesse CPI (MoM) declined to -0.2% in May from previous 0.4%

Germany Hesse CPI (YoY) dipped from previous 2.8% to 2.6% in May

Germany Saxony CPI (MoM) declined to -0.1% in May from previous 0.6%

Germany Saxony CPI (YoY): 2.8% (May) vs previous 2.9%