Societe Generale highlights that South Korean authorities have launched a multi-pronged FX stabilisation package to address short-term USD funding stress and speculative pressures on the Korean Won.

USD/CAD trades on the front foot on Friday as lower Oil prices weigh on the commodity-linked Canadian Dollar (CAD) amid cautious optimism that the United States (US) and Iran could reach an agreement that would reopen the Strait of Hormuz.

Scotiabank strategists Shaun Osborne and Eric Theoret report USD/JPY is steady but elevated, with recent gains already surpassing prior intervention-trigger levels. A 25 bps Bank of Japan (BoJ) hike on Tuesday is widely anticipated, and markets price nearly one more increase by December.

EUR/USD fluctuates between modest gains and losses heading into the weekend as traders await Tehran's decision on a possible agreement with the United States (US) to end the war in the Middle East. At the time of writing, the pair trades around 1.1573 and is on track to post modest weekly gains.

The USD/JPY pair trades near the 160.20 region on Friday as the Japanese Yen (JPY) remains slightly under pressure, while investors prepare for a key central bank week featuring the Bank of Japan's (BoJ) policy decision and Kevin Warsh’s first Federal Reserve (Fed) meeting as Chair.

The Pound Sterling turned negative on Friday against the US Dollar after data from the UK showed the economy contracted in April, while an agreement between the US and Iran improved risk appetite. Yet the Greenback erased its earlier losses and traded above its opening price.

EUR/GBP holds firm on Friday, with the Euro (EUR) modestly outperforming the British Pound (GBP) as weak UK Gross Domestic Product (GDP) data reinforced signs of a slowing economy. At the time of writing, the cross trades around 0.8633, up from an intraday low of 0.8625.

Scotiabank strategists Shaun Osborne and Eric Theoret observe that the Canadian Dollar (CAD) is weighed down by weaker Oil prices linked to Iran peace hopes, even as improved risk appetite offers some support.

NZD/USD trades around 0.5830 on Friday at the time of writing, down 0.15% on the day as the US Dollar (USD) maintains a firm tone following a series of strong US economic releases.

Brown Brothers Harriman’s Elias Haddad says GBP/USD has given back part of its US-Iran-related gains and is expected to fall to 1.3100 as United States (US) growth outpaces the United Kingdom (UK).

Commerzbank analysts Charlie Lay and Moses Lim argue that the Rupee remains vulnerable to external shocks, notably Middle East tensions, higher energy costs and El Nino-related risks.

USD/CAD trades higher around 1.3990 on Friday, with the US Dollar (USD) benefiting from stronger-than-expected inflation data in the United States (US), while the Canadian Dollar (CAD) remains weighed down by falling Oil prices and a Bank of Canada (BoC) that is showing little urgency to raise rates

Societe Generale strategists note Mexico still appears steady even as conditions become more challenging. Inflation has cooled to 3.94% in May, while Banxico has signalled an end to its easing cycle, leading markets to price potential hikes.

Nomura’s Global FX Strategy team, including Dominic Bunning and Yusuke Miyairi, argues that a more hawkish ECB path versus the Bank of England should support the Euro against the Pound.

Brazil IPCA Inflation came in at 0.58%, above expectations (0.53%) in May

The Euro (EUR) has given away previous daily gains against the US Dollar (USD) and is trading practically flat, at 1.1575 at the time of writing.

Brown Brothers Harriman’s Elias Haddad reports that EUR/USD briefly dipped toward 1.1500 after the ECB decision before rebounding on the US-Iran breakthrough. Haddad expects EUR/USD to edge lower and stabilize closer to 1.1400 as US growth outperforms the Eurozone.

The British Pound (GBP) maintains a moderately positive tone against the US Dollar (USD) on Friday, as investors’ optimism about a US-Iran peace deal has offset rather uninspiring UK data.

Societe Generale analysts reports USD/BRL has been rebounding from an interim low near 4.88 and is approaching the 200-DMA and a descending trend line around 5.25. They stress the need to see if a base and trend reversal can form, with resistance at 5.32/5.34 and downside risk if 4.99 fails.

Thursday’s EuropeanSilver (XAG/USD) retraces previous losses on Friday's European session, returning to levels in the mid-range of the $67.00s at the time of writing.

Nordea’s Jan von Gerich notes that EUR/USD is stuck between 1.15 and 1.16 despite strong US data and favourable US interest rate differentials. He argues the Dollar has underperformed relative to historical patterns and still expects a higher EUR/USD in the medium term.

Commerzbank’s Volkmar Baur argues that the New Zealand Dollar faces ongoing headwinds as the Iran conflict, higher energy prices and renewed inflation pressures derail a tentative economic upswing.

The Australian Dollar (AUD) reverses an intraday dip to the 0.7020 area and climbs to the top end of its daily range during the first half of the European session on Thursday.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note AUD/USD’s sharp rebound from 0.6979 to 0.7055 has room to extend toward 0.7060, though a clear break above this level is seen as unlikely near term.

MUFG’s Lee Hardman reports that renewed optimism over a US-Iran deal has lifted the Euro against the Dollar, with EUR/USD moving back toward 1.1600.

The Japanese Yen (JPY) is giving away previous gains against the US Dollar (USD) on Friday, with the USD/JPY pair returning to levels above 160.00, widely considered as the limit of tolerable yen weakness for Japanese authorities.

The GBP/JPY cross regains positive traction following the previous day's good two-way price moves and sticks to intraday gains through the first half of the European session on Friday.

The Japanese Yen (JPY) continues to face substantial downside pressure, trading at highly elevated levels against the US Dollar and crossing historical intervention-trigger points.

The Euro (EUR) trades higher 0.12% higher to near 185.45 against the Japanese Yen (JPY) during the European trading session on Friday.

Commerzbank’s Charlie Lay and Moses Lim note that the Indian Rupee has weakened sharply versus the Dollar in 2026 on higher Oil prices, portfolio outflows and a stronger USD.