The Pound Sterling drops some 0.10% as the Greenback gets underpinned by a hot inflation report in the US, which prompted investors to price in a less dovish Federal Reserve. Also heightened risks in the Middle East weighed in the GBP/USD pair, which trades at 1.3469 at the time of writing.

The Australian Dollar (AUD) trades flat against the US Dollar (USD) on Friday as the Greenback reverses earlier gains despite stronger-than-expected US Producer Price Index (PPI) data. At the time of writing, AUD/USD is trading around 0.7112 and is on track for an eighth consecutive week of gains.

NZD/USD trades around 0.6000 on Friday at the time of writing, up 0.19% on the day, benefiting from a modest pullback in the US Dollar (USD) amid a wait-and-see mood ahead of fresh signals on the outlook for monetary policy in the United States (US).

EUR/USD steadies on Friday, extending the range-bound price action that has defined trading so far this week. The Euro (EUR) remains relatively firm after the US Dollar (USD) failed to build on stronger-than-expected US Producer Price Index (PPI) data.

USD/JPY hovers around 156.00 on Friday at the time of writing, down 0.08% on the day, despite the release of stronger-than-expected US Producer Price Index (PPI) data. The move reflects a measured market reaction, with the US Dollar (USD) struggling to extend its rebound after the inflation figures.

Societe Generale analysts note that Deputy Governor Galia Borja signaled Banxico has room to resume rate cuts, pointing to weak domestic demand, falling investment and a stronger Peso.

USD/CAD trades around 1.3680 on Friday at the time of writing, virtually unchanged on the day, as investors digest a fresh batch of macroeconomic data from the United States (US) and Canada.

The Euro (EUR) ticks higher against the British Pound (GBP) on Friday, with Sterling under broad pressure as renewed political uncertainty in the United Kingdom (UK) dampens investor sentiment.

EUR/JPY trades around 184.00 on Friday at the time of writing, down 0.10% on the day, marking a second straight decline. The cross is pressured by a strengthening Japanese Yen (JPY) following the release of mixed inflation data from Tokyo.

Germany Consumer Price Index (YoY) below expectations (2%) in February: Actual (1.9%)

Germany Consumer Price Index (MoM) registered at 0.2%, below expectations (0.5%) in February

Germany Harmonized Index of Consumer Prices (YoY) came in at 2% below forecasts (2.1%) in February

Germany Harmonized Index of Consumer Prices (MoM) below forecasts (0.5%) in February: Actual (0.4%)

Brazil Mid-month Inflation came in at 0.84%, above expectations (0.6%) in February

The Japanese Yen (JPY) surrenders half of its early gains against the US Dollar (USD) during the European trading session on Friday. The USD/JPY pair rebounds to near 155.90 as the JPY falls back, but is still 0.15% down.

Societe Generale analysts note that EUR/GBP has rebounded from an interim low near 0.8610 and quickly reclaimed its 200‑DMA, suggesting limited downside momentum.

USD/CHF trades around 0.7730 on Friday at the time of writing, down 0.21% on the day, after posting modest gains in the previous session. The pair weakens as the Swiss Franc (CHF) attracts safe-haven flows amid renewed geopolitical tensions and persistent uncertainty surrounding global trade.

The EUR/USD pair trades flat around 1.1800 during the European trading session on Friday. The major currency pair consolidates as the US Dollar (USD) wobbles ahead of the United States (US) Producer Price Index (PPI) data for January, which will be published at 13:30 GMT.

ING’s Bert Colijn notes Eurozone inflation fell to 1.7% in January on energy base effects and is expected to stay just under 2% through 2026, with core at 2.2% and close to target.

Germany Hesse CPI (YoY) rose from previous 2.1% to 2.2% in February

Germany Hesse CPI (MoM) rose from previous 0% to 0.4% in February

Nordea’s Jan von Gerich notes that EUR/USD has traded largely sideways as markets digest the US Supreme Court ruling on tariffs and subsequent replacement levies.

Germany Baden-Wuerttemberg CPI (MoM) rose from previous 0% to 0.2% in February

Germany Baden-Wuerttemberg CPI (YoY) fell from previous 2.1% to 1.8% in February

Germany Saxony CPI (MoM) up to 0.3% in February from previous 0%

Germany Saxony CPI (YoY) unchanged at 2.3% in February

Germany Brandenburg CPI (YoY) fell from previous 2.2% to 2% in February

Germany Brandenburg CPI (MoM) rose from previous 0% to 0.4% in February

Germany North Rhine-Westphalia CPI (YoY) dipped from previous 2% to 1.8% in February

Germany North Rhine-Westphalia CPI (MoM) rose from previous 0.1% to 0.2% in February