Commerzbank’s Barbara Lambrecht says tensions around the Strait of Hormuz and tight diesel inventories continue to support Brent. With prices near USD 94 and almost 20% above their early-August lows, Brent remains well below its April peak.

Standard Chartered’s Aldian Taloputra assesses Indonesia’s 2027 fiscal plans, noting a targeted deficit of 2.4% of GDP versus 2.9% in 2026. The bank maintains its own forecast of a 2.9%-of-GDP deficit, citing ambitious revenue assumptions and potential tax shortfalls.

Nomura strategists see greater fiscal vulnerabilities in the United Kingdom (UK) than in the Euro area. Strong foreign inflows into Euro area bonds and comparatively better debt dynamics support its view that Euro (EUR) should outperform British Pound (GBP), US Dollar (USD) and Japanese Yen (JPY).

Deutsche Bank strategists highlight a sharp improvement in sentiment towards Prime Minister Burnham and Labour.

S&P Global will release the preliminary figures of August’s United States Purchasing Managers' Indices (PMIs), a report collecting top private sector executives' opinions about business conditions, to provide an early indication of momentum in the world’s largest economy.

Rabobank's Senior US Strategist Philip Marey discusses United States (US) Treasuries, noting that the Treasury Department’s surprise move to boost buybacks of longer-term bonds has only briefly interrupted rising yields.

Commerzbank’s Antje Praefcke reports that the Riksbank left its policy rate at 1.75% and maintained a restrictive stance, still seeing a hike later this year as likely.

European Central Bank (ECB) Governing Council member Mārtiņš Kazāks said during the European trading session on Friday that the central bank won’t hesitate to act if needed to bring Eurozone inflationary pressures down to the 2% target.

BNY’s David Tam stresses that while the Federal Reserve retains legal capacity to support corporate credit, the current Warsh Fed is unlikely to repeat Covid‑era interventions.

Commerzbank’s Tatha Ghose highlights growing challenges for Polish policymakers, citing stretched fiscal plans and accelerating underlying inflation.

The United Kingdom (UK) S&P Global Composite Purchasing Managers' Index (PMI) surprisingly expanded at a faster pace to 52.5 in August due to robust service sector activity.

EUR/CAD extends its losses for the second successive day, trading around 1.6100 during the European hours on Friday. The currency cross depreciates as the Euro (EUR) holds losses following the release of HCOB Purchasing Managers’ Index (PMI) data from Germany.

German flash HCOB Composite PMI rises at a moderate pace to 51.0 in August amid a slowdown in the services sector. The Composite PMI was expected to remain steady at 51.3.

Deutsche Bank strategists note that United States (US) equities fell sharply as earlier gains in fixed income reversed, with losses across the S&P 500, Nasdaq and Magnificent Seven. Weak Walmart earnings and slower US sales growth added to concerns about consumer resilience.

Asian share indices hold gains on Friday, though they remain on track for weekly losses as pressure on global bond yields eases. US Treasury yields resumed their upward trajectory following a brief reprieve triggered by Wednesday’s unexpected Treasury intervention.

Retail Sales, a key measure of consumer spending, in the United Kingdom (UK) declined 0.5% month-over-month (MoM) in July after rising by 0.7% in June (revised from 1.0%), the latest data published by the Office for National Statistics (ONS) showed on Friday.

The Indian Rupee (INR) edges down against the US Dollar (USD) in the opening session on Friday. The USD/INR ticks up to near 95.72 as elevated oil prices and a sharp recovery in United States (US) Treasury Yields have weighed on the Indian currency.

The preliminary reading of India’s HSBC Manufacturing Purchasing Managers Index (PMI) declined to 52.9 in August versus 53.5 prior, the latest data published by S&P Global and HSBC Bank showed on Friday. 

USD/IDR extends its losses for the third successive day, trading around 17,760 during the Asian hours on Friday. The currency pair continues to depreciate as the Indonesian Rupiah (IDR) maintains its strength, defying a sharp widening of Indonesia’s current account deficit.

Netherlands, The Consumer Confidence Adj: -34 (August) vs -35

The GBP/USD pair gathers strength near 1.3645 during the early Asian trading hours on Friday. The US Dollar (USD) softens against the British Pound (GBP) amid fading Federal Reserve (Fed) rate hike expectations.

Japan Jibun Bank Manufacturing PMI meets expectations (55.1) in August

Japan Jibun Bank Services PMI increased to 52.3 in August from previous 51.2

US Treasury Secretary Scott Bessent said that the US President Donald Trump administration’s plan to crush Iran’s economy will likely negate the need for major US military operations against the Islamic Republic, CNBC reported on Thursday.

Japan’s National Consumer Price Index (CPI) climbed by 2.0% YoY in July, compared to the previous reading of 1.7%, according to the latest data released by the Japan Statistics Bureau on Friday.

South Korea Producer Price Index Growth (MoM) down to -0.4% in July from previous 0%

South Korea Producer Price Index Growth (YoY) declined to 7.7% in July from previous 8.6%

DBS strategist Chang Wei Liang reports that South Korean Won (KRW) strength has resumed, with USD/KRW dropping to the mid-1380s even as KOSPI fell nearly 6% on semiconductor-led losses.

OCBC strategists Sim Moh Siong and Christopher Wong note that Indonesian Rupiah (IDR) should find some relief from a softer Dollar and lower long-end US yields, with BI keeping its policy rate at 5.75% and focusing on currency stability.

United Overseas Bank’s Quek Ser Leang and Lee Sue Ann note that USD/SGD extended its overnight slide as the US Dollar (USD) sell-off pushed the pair back toward the 1.27 area.