The EUR/USD pair edges up by 0.12% on Friday as the US Dollar (USD) drops amid hostilities in the Middle East, while a US-Iran deal is reportedly pending approval by the White House and senior Iranian officials. At the time of writing, EUR/USD trades at 1.1664.
Gold (XAU/USD) extends its rebound on Friday as traders assess the prospects of a potential US-Iran deal. At the time of writing, XAU/USD trades around $4,583 after recovering from a two-month low of $4,366 touched on Thursday.
USD/CAD reverses its intraday gains on Friday as a softer US Dollar (USD) helps the Canadian Dollar (CAD) recover from weakness driven by softer-than-expected Gross Domestic Product (GDP) figures.
In a post published on Truth Social on Friday, United States (US) President Donald Trump said that the naval blockade will be lifted and ships caught in the Strait of Hormuz may start the process of "heading home."
The AUD/USD pair advances toward the 0.7180 region on Friday as the United States (US) Dollar (USD) remains under pressure amid improving market sentiment linked to renewed hopes for a longer-lasting ceasefire agreement between the US and Iran.
Federal Reserve (Fed) Governor Michelle Bowman said progress on lowering inflation has stalled while discussing the economic outlook and monetary policy in a speech at a conference in Iceland on Friday. Bowman claimed that the longer the Iran war continues, the greater the risks to inflation become.
GBP/JPY trims part of its earlier intraday losses on Friday as the British Pound (GBP) draws support from hawkish remarks by Bank of England (BoE) Governor Andrew Bailey. At the time of writing, the cross trades around 214.15 after recovering from an intraday low of 213.59.
Anna Paulson, President of the Federal Reserve (Fed) Bank of Philadelphia, said inflation is a drag on the United States (US) economy while discussing the economic outlook and regional trends at an event hosted by the Chamber of Commerce of Southern New Jersey on Friday.
In a post published on X on Friday, Iran's top negotiator Mohammad Baqer Qalibaf said they have no trust in guarantees or words, and added: "Only actions are the measures, no action will be taken before the other side acts."
DBS Group Research’s Philip Wee notes that Brent and WTI have fallen sharply, as markets anticipate abundant supply from the Gulf.
Brown Brothers Harriman’s Elias Haddad notes that resilient US growth and sticky PCE inflation keep the Dollar supported despite improved risk sentiment from progress on a US-Iran deal.
Canada's Gross Domestic Product (GDP) was unchanged on a quarterly basis in the first quarter of 2026 following the 0.2% contraction recorded in the last quarter of 2025, Statistics Canada reported on Friday.
Brown Brothers Harriman reports that USD/JPY is trading directionless above 159.00 after Japan’s Ministry of Finance conducted record-sized FX intervention to cap the pair around 160.00.
Annual inflation in Germany, as measured by the change in the Consumer Price Index (CPI), softened to 2.6% in May's flash estimate from 2.9% in April. This print came in below the market expectation of 2.8%. On a monthly basis, the CPI declined 0.2% following the 0.6% increase recorded in April.
Gold price (XAU/USD) is up 0.7% to near $4,530 during the European trading session on Friday. The precious metal extends its Thursday’s recovery move, as Oil prices decline due to renewed hopes of a permanent peace deal between the United States (US) and Iran.
The NZD/USD pair trades 0.55% higher to near 0.5967 during the European trading session on Friday and is up 2% so far this week.
The Euro (EUR) holds moderate losses against the US Dollar (USD) on Friday, with price action trapped within the last two weeks’ trading range, below 1.1660.
Brown Brothers Harriman highlights that the New Zealand Dollar (NZD) is outperforming, with NZD/USD approaching the 0.6000 resistance as New Zealand business sentiment improves and RBNZ Assistant Governor Silk signals all options, including a 50 bps hike, are on the table for July.
Kansas City Federal Reserve (Fed) Bank President Jeffrey Schmid said during the European trading session on Friday that elevated energy prices are diminishing households’ purchasing power.
Crude prices trend lower for the third day in a row on Friday, with the US benchmark West Texas Intermediate (WTI) barrel trading around $86.50 at the time of writing after hitting one-month lows a few pips below $86.00. WTI Oil is on track for a nearly 15% decline over the last two weeks.
DBS strategist Philip Wee notes markets have strong expectations that the European Central Bank will hike at its next meeting, even as the Federal Reserve (Fed) debates internal reforms.
Philip Wee of DBS Group Research highlights that US Treasury yields have eased as PCE inflation moderates, but headline inflation remains elevated, keeping real Fed Funds Rates in focus.
ING’s Francesco Pesole notes that the Canadian Dollar remains a G10 laggard despite a pause, with short‑term rate differentials and global equities driving USD/CAD.
ING strategists Francesco Pesole, Frantisek Taborsky and Chris Turner note that the Dollar has softened after news of a tentative ceasefire extension between the US and Iran, but remains stronger than in early May.
The British Pound (GBP) drifts lower against the US Dollar (USD) on Friday, reaching session lows at 1.3408 so far, on track for a moderate weekly decline.
Bank of England (BoE) Governor Andrew Bailey Said during the European trading session on Friday that the central bank should monitor the situation in the Middle East and how it has been affecting the United Kingdom (UK) economy and inflation very closely and adjust policy as required.
Silver prices (XAG/USD) fell on Friday, according to FXStreet data. Silver trades at $75.51 per troy ounce, down 0.17% from the $75.64 it cost on Thursday.
The AUD/USD pair attracts fresh sellers on Friday, stalling the previous day's goodish recovery move from sub-0.7100 levels or a one-week low.
The Euro (EUR) has snapped a five-day winning streak against the Japanese Yen (JPY) on Friday, as comments by Japanese authorities regarding Yen speculation have put investors on their toes.
The Indian Rupee (INR) extends its advance against the US Dollar (USD) in India's afternoon trading hours on Friday after a holiday in India. The USD/INR pair drops to near 95.25 as falling oil prices due to renewed optimism on the United States (US)-Iran deal have strengthened the Indian Rupee.
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