Softer inflation figures could dampen the market speculation about a June Bank of Japan interest rate cut. The Bank of Japan continues to focus on household spending and the services sector to fuel demand-driven inflation. In May, the Jibun Bank Services PMI fell from 54.3 to 53.6, suggesting no immediate rush for the Bank of Japan to raise interest rates.

Nevertheless, weakness in the Yen remains a concern for the Bank of Japan and the Japanese government. The weak Yen lifts import prices, impacting household spending, a focal point for the BoJ. Investors should monitor any BoJ or Japanese government views on the inflation figures.

US Economic Calendar: Durable Goods Orders, Consumer Sentiment, and the Fed

Later in the Friday session, durable goods orders and finalized Michigan Consumer Sentiment numbers will attract investor attention.

After better-than-expected US data on Thursday, upbeat stats could further reduce investor bets on a September Fed rate cut.

According to preliminary numbers, the Michigan Consumer Sentiment Index fell from 77.2 to 67.5 in May. Moreover, the Michigan Inflation Expectations Index rose from 3.2% to 3.5%.

Furthermore, economists forecast core durable goods orders to increase by 0.1% in April after rising by 0.2% in March.