OCBC's Sim Moh Siong and Christopher Wong note that Oil has surged on escalating US–Iran tensions, lifting the Dollar and pressuring Oil‑importing currencies, with Brent now above USD70/bbl near its highest since June 2025.

Danske Research Team notes that Japan’s January CPI fell to 1.5% year-on-year, with core CPI at 2.0%, the lowest core reading in two years. The analysts suggest that relatively low core inflation may affect Bank of Japan rate-hike timing, even as PMIs and fiscal policy signal strong demand.

The EUR/GBP cross loses ground to around 0.8735 during the early European session on Friday. The Pound Sterling (GBP) gathers strength against the Euro (EUR) after the stronger-than-expected UK economic data.

The United Kingdom (UK) Retail Sales climbed 1.8% month-over-month (MoM) in January after rising 0.4% in December, according to the latest data published by the Office for National Statistics (ONS) on Friday.

United Kingdom Public Sector Net Borrowing below expectations (£-23.1B) in January: Actual (£-30.366B)

Sweden Capacity Utilization fell from previous -0.2% to -0.6% in 4Q

United Kingdom Retail Sales (MoM) came in at 1.8%, above expectations (0.2%) in January

United Kingdom Retail Sales ex-Fuel (MoM) above expectations (0.2%) in January: Actual (2%)

United Kingdom Retail Sales ex-Fuel (YoY) came in at 5.5%, above expectations (3.6%) in January

Australian Dollar (AUD) holds losses against the US Dollar (USD) during the Asian hours on Friday. The AUD/USD pair trades around 0.7040 at the time of writing after giving up recent gains from the previous session.

Japan Prime Minister Sanae Takaichi said on Friday that necessary spending will be funded as much as possible through the initial budget. She further stated that she will steadily lower the debt-to-GDP ratio and restore fiscal sustainability.

India HSBC Composite PMI dipped from previous 59.4 to 59.3 in February

India HSBC Services PMI down to 58.4 in February from previous 58.5

India HSBC Manufacturing PMI increased to 57.5 in February from previous 55.4

The European Central Bank (ECB) President Christine Lagarde said that she expects to serve as ECB president until October 2027, the Wall Street Journal reported on Friday.

Reserve Bank of New Zealand (RBNZ) Governor Anna Breman said on Thursday that the path to 2% inflation has been bumpy, but we expect inflation to already be back in our target range in the first quarter of this year.

Japan Jibun Bank Services PMI climbed from previous 53.7 to 53.8 in February

Japan Jibun Bank Manufacturing PMI: 52.8 (February) vs 51.5

US President Donald Trump said that Iran must make a deal, or “bad things will happen," with the threat of military strikes still hanging heavy over delicate nuclear negotiations, BBC reported on Thursday.

Japan National CPI ex Food, Energy (YoY) fell from previous 2.9% to 2.6% in January

Japan’s National Consumer Price Index (CPI) rose by 1.5% YoY in January, compared to the previous reading of 2.1%, according to the latest data released by the Japan Statistics Bureau on Friday.

Japan National Consumer Price Index (YoY) fell from previous 2.1% to 1.5% in January

Japan National CPI ex Fresh Food (YoY) meets forecasts (2%) in January

San Francisco Federal Reserve President Mary Daly said on Thursday that the monetary policy is in a good place.

The preliminary reading of Australia's S&P Global Manufacturing Purchasing Managers Index (PMI) came in at 51.5 in February versus 52.3 prior, the latest data published by S&P Global showed on Friday.

New Zealand Trade Balance NZD (MoM) above forecasts ($-745M) in January: Actual ($-519M)

New Zealand Trade Balance NZD (YoY) down to $-2.3B in January from previous $-2.2B

Australia S&P Global Manufacturing PMI fell from previous 52.3 to 51.5 in February

Australia S&P Global Composite PMI down to 52 in February from previous 55.7

Australia S&P Global Services PMI declined to 52.2 in February from previous 56.3