06:50 AM EDT, 06/21/2024 (MT Newswires) -- The US dollar was broadly higher in the European morning Friday as risk aversion in global markets and softer PMI surveys weighed on currencies across much of the region.

European currencies were the underperformers in the G10 group while the New Zealand dollar and Japanese yen bucked the strong dollar trend, rising alongside other Asia Pacific counterparts.

Asia Pacific currencies saw widespread gains but the South African rand and Mexican peso were the outperformers within the broader G20 grouping despite clear risk aversion in global markets.

Equity markets were weaker across Europe and Asia, and government bonds declined after PMI surveys signaled weakening growth momentum in Europe and Japan during June.

Europe's HCOB Flash Composite PMI gave back all of the prior month's gains, falling to a three-month low and signaling downside risk for the S&P Global PMI surveys due out in the US at 9:45 am ET.

A quick summary of foreign exchange activity heading into the European lunch hour and the US open;

In Europe, EUR/USD was quoted 0.14% lower around 1.0690 after falling from 1.0721 and trading as low as 1.0670 following the release of a weaker-than-expected HCOB Flash Composite PMI for June. The euro underperformed after the composite PMI surprised on the downside, led by the manufacturing sectors in Germany and France. The European calendar is now devoid of meaningful or market-moving appointments until the release of inflation figures on July 2nd.

Elsewhere in the region, GBP/USD was quoted 0.11% lower around 1.2646 after falling from 1.2675 at the European open and trading as low as 1.2631. However, the pound was quick to rebound off intraday lows when the S&P Global PMI surveys warned of an acceleration of inflation in June linked to increased global shipping costs. The UK's May retail sales were stronger than expected, and the GfK consumer confidence barometer rose but these did little to keep sterling from underperforming major counterparts alongside European peers. The next calendar highlight is the final GDP figures for Q1 out next Friday.

In Asia, USD/JPY was quoted 0.01% higher around 158.95, making the yen the second-best-performing G10 currency behind only the US dollar, after trading as low as 158.65 following the release of the European PMIs. The pair fell from highs of 159.12 and remained under pressure throughout much of the Asia session. Japanese inflation rose in May but was weaker than expected. The yen appeared to draw support from global market risk aversion and the outperformance of regional counterparts. The next calendar highlight is the release of the BoJ's summary of opinions from the June meeting on Monday.

In North America, USD/CAD was quoted 0.10% higher around 1.3698 after rising from overnight lows at 1.3674. The Loonie may be sensitive to the release of April retail sales figures in Canada at 8:30 am ET and the 9:45 am ET release of S&P Global PMIs for the US.