USD On Front Foot, Yen Brings Up Rear

U.S. dollar has turned bid as the final trading day of the week kicked off. The BBDXY crept higher amid light bear flattening in U.S. Tsy curve. Despite this uptick, the greenback remains the worst G10 performer on a weekly basis, following the adjustments to Fed rate-hike pricing in response to U.S. inflation data.

• The upswing in USD/JPY seems to be a major contributor to broader greenback strength, with the pair last sitting ~30 pips higher on the day. It has moved past yesterday's peak and is consolidating there as we approach the Tokyo fix.
• The kiwi dollar continues to outperform its Antipodean cousin, with AUD/NZD currently having a look below yesterday's trough. Australia/New Zealand 2-year swap spread is marginally lower.
• The sterling trades on a softer footing ahead of the release of UK data which is expected to show that the economy slipped into contraction in the second quarter.
• The Asia-Pac data docket remains light through the rest of the day, with flash UK GDP & industrial output, Swedish CPI & flash U.S. Uni. of Mich Survey coming up after hours. Fed's Barkin will make a TV appearance.