Greater Manchester Mayor Andy Burnham could now challenge UK Prime Minister Keir Starmer for the leadership of the governing Labour Party and the country after winning a parliamentary seat in northern England on Friday, CNN reported on Friday.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, remains flat after two days of gains and is trading around 100.83 during the Asian hours on Friday.

US Vice President JD Vance canceled his trip to talks with Iran in Switzerland, CNN reported on Friday.

Japan’s Finance Minister Satsuki Katayama said on Friday that the government is prepared to take decisive action against speculative activity in the foreign exchange market. 

Bank of Japan (BoJ) Deputy Governor Himino said on Friday that the Japanese central bank likely to keep hiking rates based on economic, price and financial trends. Himino added that currency moves may impact inflation expectations, core inflation, so we will keep monitoring developments closely. 

The Bank of Japan (BoJ) board members shared their views on the monetary policy outlook on Thursday, per the BoJ Minutes of the April meeting.    

The US-Iran interim peace deal took effect, and shipping started returning to the Strait of Hormuz as the US dropped its naval blockade of Iran, Bloomberg reported on Thursday.

Japan National CPI ex Food, Energy (YoY) declined to 1.8% in May from previous 1.9%

Japan’s National Consumer Price Index (CPI) rose by 1.5% YoY in May, compared to the previous reading of 1.4%, according to the latest data released by the Japan Statistics Bureau on Friday.

Japan National CPI ex Fresh Food (YoY) meets expectations (1.4%) in May

Japan National Consumer Price Index (YoY) climbed from previous 1.4% to 1.5% in May

New Zealand Trade Balance NZD (MoM) registered at $800M, below expectations ($875M) in May

New Zealand Trade Balance NZD (YoY) fell from previous $-2.76B to $-3.36B in May

United Kingdom GfK Consumer Confidence registered at -23 above expectations (-24) in June

New Zealand Exports increased to $8.88B in May from previous $8.62B

New Zealand Imports: $8.08B (May) vs $6.7B

South Korea Producer Price Index Growth (YoY) increased to 8.5% in May from previous 6.9%

South Korea Producer Price Index Growth (MoM) down to 0.8% in May from previous 2.5%

New Zealand Westpac Consumer Survey: 80.4 (2Q) vs previous 94.7

United States Net Long-Term TIC Flows came in at $103.1B, above forecasts ($75B) in April

United States Total Net TIC Flows down to $26.1B in April from previous $150.7B

Argentina Trade Balance (MoM) came in at $3504M, above expectations ($2200M) in May

European Central Bank (ECB) policymaker José Luis Escrivá said on Thursday that higher energy costs are spreading to services and transport, while warning that the inflation outlook remains highly uncertain for the European Union (EU) at a speech in Barcelona.

United States 4-Week Bill Auction fell from previous 3.595% to 3.58%

Deutsche Bank’s Sanjay Raja reviews the latest Bank of England decision, noting Bank Rate was held at 3.75% as expected. He highlights a more divided MPC on paper but a stronger consensus for a prolonged hold.

United States EIA Natural Gas Storage Change registered at 73B, below expectations (82B) in June 12

The Euro (EUR) is caught between a hawkish but isolated ECB, weaker regional growth prospects, and a US Dollar that is recoupling with interest-rate differentials. BNY, Rabobank, and Societe Generale all flag headwinds for the single currency, though each emphasizes a different transmission channel.

RaboResearch Global Economics & Markets discusses the Bank of England’s decision to keep Bank Rate at 3.75% with a 7–2 split, noting that two members preferred a 25bp hike. The sharp fall in energy prices suggests inflation may peak below earlier projections.

Nomura economists Josie Anderson, George Buckley, Andrzej Szczepaniak and David Seif note that Norges Bank kept its policy rate at 4.25% in June but delivered hawkish guidance and a higher rate path.

The European Central Bank (ECB) remains committed to maintaining a restrictive monetary policy stance in order to contain the inflationary impact of the energy shock, even under a milder economic scenario, according to Chief Economist Philip Lane comments reported by Reuters.