Silver (XAG/USD) remains range-bound on Friday as traders avoid aggressive positioning amid uncertainty surrounding US-Iran negotiations. At the time of writing, the white metal trades near $76.00 and is likely to close the week on a flat note.

USD/JPY holds firm on Friday, remaining confined within this week’s trading range as traders refrain from placing aggressive bullish bets near the 160.00 handle following suspected intervention by Japanese authorities in late April.

The Euro retreats by 0.14% during the North American session amid growing speculation that the US and Iran may reach a deal to end the conflict. The Greenback is recovering some ground, underpinned by Oil prices trimming some of its earlier losses.

The Canadian Dollar (CAD) remains on the defensive against the US Dollar (USD) on Friday as traders look past stronger Canadian Retail Sales figures and keep their attention on developments surrounding US-Iran negotiations.

Deutsche Bank analysts expect Japan’s Tokyo Consumer Price Index (CPI) to show a slight acceleration, with core CPI ex fresh food seen at 1.6% YoY and core-core at 2.0%. Industrial production is forecast to rise 0.2% MoM.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann expect USD/JPY to trade intraday between 158.80 and 159.25 after a brief pop to 159.34 failed to strengthen momentum.

EUR/GBP trades on the back foot on Friday and is set to end the week in negative territory, as the British Pound (GBP) outperforms most major peers despite weaker-than-expected UK Retail Sales data, while upbeat German economic data fails to provide meaningful support to the Euro (EUR).

DBS Group Research economist Radhika Rao notes that the Reserve Bank of India (RBI) has revived monetary operations as the Rupee approached a record low near 97 per US Dollar (USD).

Nordea's strategists Sara Midtgaard and Henrik Unell see scope for Euro (EUR) appreciation against the US Dollar (USD) as policy divergence grows.

Brown Brothers Harriman’s (BBH) Elias Haddad observes GBP/USD trading directionless near its 200-day moving average around 1.3423, with downside risks from potential United Kingdom (UK) swaps curve repricing and a possible leftward shift under a Labour government.

The US Dollar (USD) remains moderately bid against the Japanese Yen (JPY) on Friday, crawling up above 159.00, and nearing 160.00, allegedly the limit of tolerable JPY weakness for Tokyo.

The British Pound (GBP) is up against its major currency peers, but is marginally down to near 1.3420 against the US Dollar (USD) during the European trading session on Friday. The British currency rises even as concerns over United Kingdom (UK) public finances have escalated.

OCBC’s Christopher Wong says USD/JPY’s recent rally is moderating as UST yields and the Dollar ease, but the pair remains elevated. The bank warns Ministry of Finance intervention risk could rise if USD/JPY breaks into the 160–161 area in thin holiday liquidity.

The Australian Dollar (AUD) is down 0.25% to near 0.7130 against the US Dollar (USD) during the European trading session on Friday.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note AUD/USD is likely to trade between 0.7120 and 0.7175 in the near term after a sharp rebound left momentum unclear.

European Central Bank (ECB) Governing Council member and Governor of the Central Bank of Malta, Alexander Demarco, said during the European trading session on Friday that the central bank will probably need to hike interest rates in the June policy meeting.

The Euro (EUR) nudges lower against the US Dollar (USD) for the second consecutive day on Friday, on track to close the week in the red for the second consecutive time.

Brown Brothers Harriman’s (BBH) Elias Haddad highlights USD/CAD trading higher toward key resistance at its 200-day moving average near 1.3812, with Canadian data seen as unlikely to shift markets.

On Friday, the European Central Bank (ECB) released its indicator of the Euro area’s Negotiated Wage Rates data for the first quarter (Q1) of 2026.

Societe Generale analysts note USD/JPY has rebounded after testing a multi‑month channel floor near 155.50/155, now aligned with the 200‑DMA. The pair is edging toward the April peak at 160.50/160.70, seen as interim resistance.

The GBP/JPY cross attracts some dip-buyers on Friday and sticks to modest intraday gains through the first half of the European session.

OCBC highlights that USD/INR has pulled back from record highs as reports suggest the RBI is exploring tools to steady the Rupee, including possible rate hikes and FX operations.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann see EUR/USD consolidating intraday between 1.1595 and 1.1640 after a brief dip to 1.1575 failed to build downside momentum. On a 1–3 week view, a break above 1.1655 would signal that the decline from mid‑May has likely ended.

Germany IFO – Expectations above expectations (83.5) in May: Actual (83.8)

Germany IFO – Current Assessment came in at 86.1, above expectations (85.1) in May

Germany IFO – Business Climate came in at 84.9, above expectations (84.2) in May

The USD/JPY pair trades slightly higher to near 159.10 during the European trading session on Friday. The pair has been broadly sideways over the last three trading days, with investors awaiting the announcement of a deal between the United States (US) and Iran.

The Swiss Franc (CHF) consolidates right below 0.7870 against the US Dollar (USD) on Friday. The pair retreated from the 0.7900 area over the previous two days, but remains steady within the weekly range, with investors wary of taking risks, amid confusing messages from the Middle East.

USD/CAD remains stronger for the fourth consecutive day, hovering around 1.3790 during the early European hours on Friday. The pair holds ground as the US Dollar (USD) receives support from rising odds of hawkish sentiment surrounding the Federal Reserve (Fed) policy stance.

The NZD/USD pair loses ground to near 0.5870 during the early European trading hours on Friday.