Euro futures faced pressure as German business climate hit a multi-year low.

June Euro futures rebounded in Friday's session but remained on track for a weekly decline of over half a percent. The U.S. dollar found support amid the ongoing Iran stalemate and a functionally closed Strait of Hormuz, which kept energy prices elevated and contained U.S. rate cut expectations. In Europe, Germany's Ifo Business Climate Index dropped to 84.4, marking its lowest level since May 2020. The broad economic damage was reflected in falling current conditions and forward-looking expectations components. With Germany's private sector contracting and stagflation risks building ahead of Thursday's ECB meeting, Euro futures remained on the defensive.