Sterling holds firm despite economic weakness and political uncertainty.The British pound was on track for its strongest weekly performance in nearly a month on Friday, benefiting from a weaker US dollar as investors responded to growing optimism that a potential Middle East peace agreement could be approaching. Sterling showed little reaction to fresh economic data indicating that the UK economy may be beginning to feel the effects of the conflict involving Iran.

Iran media says that memorandum of understanding draft still not yet finalised.For one, the US is already not going to lift sanctions on Iran before any nuclear promises have been kept. Then, Trump has already reaffirmed that the naval blockade will remain in place regardless.

ECB's Kocher: Too early to predict July's interest rate decision.ECB's Kocher: Too early to predict July's interest rate decision

US Natural Gas: Inventory Surplus Continues to Weigh on Prices.The US natural gas market (XNG/USD) is entering the summer season under the influence of two opposing forces. Domestically, the picture remains bearish.

Japanese Yen trades back to intervention levels despite widely-expected BoJ hike.Japanese Yen trades back to intervention levels despite widely-expected BoJ hike

Euro gains against Japanese Yen on more ECB interest rate hike hopes.Euro gains against Japanese Yen on more ECB interest rate hike hopes

Pound heads for weekly rise as investors shrug off soft GDP, focus on Iran peace.The pound headed ​towards its strongest weekly performance in nearly a month on Friday, taking advantage of a dip ‌in the dollar driven by optimism that a Middle East peace deal may be in the offing.

Euro edges down from weekly highs as markets ponder chances of a US-Iran deal.Euro edges down from weekly highs as markets ponder chances of a US-Iran deal

Japanese Yen: Volatile swings keep JPY range-bound against US Dollar – UOB.Japanese Yen: Volatile swings keep JPY range-bound against US Dollar – UOB

Turkey Current Account Balance: $-5.695B (April) vs $-9.672B.Turkey Current Account Balance: $-5.695B (April) vs $-9.672B

British Pound responds slightly positive to 0.1% decline in UK GDP in April.British Pound responds slightly positive to 0.1% decline in UK GDP in April

Pound-to-Euro Forecast: GBP Dips on UK Economic Contraction.The Pound to Euro (GBP/EUR) exchange rate edged lower on Friday after official data confirmed the UK economy contracted by 0.1% in April, while the Euro continued to draw support from the European Central Bank's latest interest rate increase. At the time of writing, GBP/EUR was trading at €1.1585, slightly lower on the day as.

FX Daily Briefing, Outlook: Pound Sterling Steady as UK economy Contracts on Iran war.Pound Sterling is trading broadly higher against most major currencies ahead of the European open despite UK GDP data showing the economy shrank modestly in April, with rising fuel costs and weaker consumer spending weighing on activity. Currency markets have largely looked through the weaker growth figures, with investors instead focusing.

ECB Hikes As Expected, One More Likely in September.UK April GDP is released today. PMIs suggest the economy remained in growth territory in April and only slowed in May, although market consensus expects GDP in April to decline further from 0.3% m/m in March to -0.1% m/m in April.

UK GDP Slips -0.1% M/M in April as Services Weigh, Three-Month Growth Accelerates.UK GDP contracted by -0.1% m/m in April, matching expectations. The setback followed solid gains of 0.4% in February and 0.3% in March, suggesting the economy lost some momentum at the start of the second quarter.

United Kingdom Total Trade Balance rose from previous £-9.658B to £-8.435B in April.United Kingdom Total Trade Balance rose from previous £-9.658B to £-8.435B in April

Natural Gas and Oil Forecast: Oil Breakdown Deepens as Iran-Israel Conflict Lingers — NatGas Steady?.Ceasefire stability amid Iran-Israel tensions allows energy prices to consolidate on fundamentals amid strong US production and healthy storage. WTI faces downside risk below $88, Brent retests channel floor, and NatGas targets $3.153.

US dollar steadies as Iran peace hopes and Fed rate risks jolt FX markets.The dollar steadied in Asian trading on Friday after suffering a sharp late-session reversal, as investors balanced hopes of a Middle East ceasefire against a still-uncertain path for US interest rates. The US currency edged up to about 160.07 yen, recovering some ground after falling to its weakest level in a week.

ECB's Nagel Refuses to Rule Out July Hike as Middle East Shock Persists.German Bundesbank President Joachim Nagel signaled that another ECB rate hike in July remains possible, emphasizing that policymakers are keeping “all options open” as they assess the inflationary impact of the Middle East conflict. Just one day after ECB raised rates by 25 basis points, Nagel stressed that the Governing Council stands “ready to respond once again, should we have to.

WTI Price Forecast: Hangs near two-month low; vulnerable below $85.00/100-day SMA.WTI Price Forecast: Hangs near two-month low; vulnerable below $85.00/100-day SMA

A steadier mood set to greet European traders today.For now, markets are reacting kindly in taking to Trump's latest boy who cried wolf act. Here's a quick catchup to the happenings from yesterday:

Indian Rupee bounces back as Trump sees Iran deal closure soon.Indian Rupee bounces back as Trump sees Iran deal closure soon

Asia open: Wall Street surges as Trump signals a breakthrough peace deal with Iran.Global markets rallied sharply after President Trump signalled a potential breakthrough US-Iran peace deal, easing fears of a prolonged energy shock. WTI crude oil plunged 6%, driving a broad relief rally across equities, bonds, and currencies.

AUD/JPY Price Forecast: Drifts higher above 112.50, upside momentum fades but remains bullish.AUD/JPY Price Forecast: Drifts higher above 112.50, upside momentum fades but remains bullish

RBA to hold cash rate at 4.35% on June 16 - Reuters poll.RBA to hold cash rate at 4.35% on June 16 - Reuters poll

Japan Industrial Production (YoY) fell from previous 2.3% to 2% in April.Japan Industrial Production (YoY) fell from previous 2.3% to 2% in April

Japan Industrial Production (MoM) came in at 0.5%, below expectations (0.8%) in April.Japan Industrial Production (MoM) came in at 0.5%, below expectations (0.8%) in April

USD/JPY Price Forecast: Climbs further beyond 160.00 as Mideast tensions undermine JPY.USD/JPY Price Forecast: Climbs further beyond 160.00 as Mideast tensions undermine JPY

ASX 200 Tests Range Highs as RBA Rate Hike Odds Collapse.Hopes for a US-Iran peace deal may have sparked today's rally, but softer RBA pricing could be helping to keep it alive. Is t.

investingLive Asia-Pacific FX news wrap: Equites stage solid rallies on Iran deal optimism.Asian markets staged a broad rally on Friday even as the situation around the Strait of Hormuz remained fluid, with diplomatic optimism around a potential US-Iran deal offset by continued flare-ups on the water.