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.

USD/CHF rebounds after registering modest losses in the previous day, trading around 0.7960 during the European hours on Friday. The technical analysis of the daily chart indicates the pair is remaining within the ascending channel pattern, signaling an ongoing bullish bias.

The Euro (EUR) is trading moderately lower against the US Dollar (USD) on Friday, changing hands at 1.1565 at the time of writing, down from the weekly highs, at 1.1590 hit on Thursday.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note that USD/JPY’s brief spike to 160.69 followed by a drop to 159.64 has left the intraday outlook mixed, with trading expected between 159.70 and 160.40.

The NZD/USD pair attracts some sellers to around 0.5820 during the early European trading hours on Friday. The US Dollar (USD) edges higher against the New Zealand Dollar (NZD) on hot US Producer Price Index (PPI) inflation data.

France Consumer Price Index (EU norm) (YoY) in line with expectations (2.8%) in May

France Consumer Price Index (EU norm) (MoM) in line with forecasts (0.1%) in May

The British Pound (GBP) attracts slight bids against its major currency peers after the release of the United Kingdom (UK) monthly Gross Domestic Product (GDP) data for April. The GBP/USD claws back a majority of its early losses and rebounds to near 1.3410.

Commerzbank’s Thu Lan Nguyen notes the European Central Bank sounded slightly hawkish, but investors already price in two further hikes, leaving the Euro softer after President Lagarde avoided clear guidance.

The USD/CAD pair gains traction to near 1.3980 during the early European trading hours on Friday, bolstered by hot US inflation data. Traders will closely monitor the developments surrounding the US-Iran peace deal.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann observe that GBP/USD’s surge to 1.3434 has stretched short-term conditions, but further gains toward a retest of 1.3435 remain possible, with 1.3465 unlikely to break.