Japan CPI stays muted in May as subsidies mask building inflation pressureOil and US dollar rising on news that Vance cancelled his trip to negotiate with IranBoJ deputy governor says delaying on price risks could cause long-term economic damageVance cancels his trip to SwitzerlandJapan finmin says prepared to take decisive action on speculative FX movesBoJ's Deputy governor warns yen moves now carry bigger inflation punch than in the pastChina says Australian beef imports hit 100% of quota on June 18thBoJ April minutes: Three members wanted to move in April; the rest caught up by JuneJapan May inflation data: Headline 1.5% y/y (expected 1.5%) Core 1.4% (expected 1.4%)UK consumer confidence masks growing cracks beneath steady headlineNew Zealand May 2026 trade data, exports and imports both up from AprilUSD/JPY mystery sell-off from 161.80 leaves traders hunting for answersCiti sees oil at $60-65 by Q1 2027 as Hormuz flows normaliseIraq flags gradual oil return as Hormuz reopens, but risks lingerReminder - Hong Kong and China markets are closed for a holiday today, 19 June 2026After 15 years of word-watching, markets may benefit from a Fed that talks lessinvestingLive Americas FX news wrap 18 Jun USDJPY surges to near highs going to 2024Summary:Iran has frozen its MOU commitments and postponed the Geneva talks with the US until a Lebanon ceasefire is in place, with Israel's continued attacks triggering the deal's first clause; Vance's Switzerland cancellation followedOil and the USD edged higher on the news; gold slipped back under $4,200Japan's core CPI held at 1.4% in May, core-core slowed to 1.8%, its weakest since September 2022, with fuel subsidies masking building pipeline pressureFinance Minister Katayama warned of decisive action against speculative yen moves, pulling USD/JPY back toward 161.00; traders are on guard for actual intervention given thin Juneteenth liquidity aheadThe Nikkei slipped modestly on Friday but closed out a strong week; Hong Kong and mainland China markets were shut for a holidaySterling faced mild headwinds from speculation over a potential leadership challenge against Prime Minister StarmerThe dominant story across Friday's session was the swift unravelling of the US-Iran peace process, just two days after the memorandum of understanding was signed. Iran has frozen its MOU commitments and postponed its Geneva meeting with the US, per Fars news agency, citing Israel's continued military operations in Lebanon as a violation of the deal's first clause. Tehran has made clear it will not implement its own obligations until Washington ensures compliance on the Lebanon front. JD Vance's cancellation of his Switzerland trip, first reported by CNN and later confirmed by the White House, was the visible symptom of a process that had already stalled before it formally began. This is the Lebanon tripwire detonating on schedule. Iran warned consistently that an unresolved Lebanon meant a broken deal, and it is now acting on that position. There are hopes of salvaging talks with a potential meeting between lower level officials.Oil and the dollar edged higher during the session as the risk premium that had drained from crude following the Hormuz reopening began to rebuild. Gold slipped back under $4,200.In Japan, May CPI data confirmed what subsidies have been doing to the headline numbers. Core held at 1.4% and core-core slowed to its weakest since September 2022, but producer price acceleration since March signals the pipeline is filling. Finance Minister Katayama added to the yen defence rhetoric, warning of decisive action against speculative moves and pulling USD/JPY back toward 161.00. With Juneteenth thinning US liquidity into the weekend, traders noted the precedent of Japan's late April and early May interventions, which totalled around $72 billion, conducted precisely during holiday-thinned conditions.The Nikkei gave back a fraction of what had been a strong week. Sterling softened modestly on domestic political noise around a potential challenge to Prime Minister Starmer. This article was written by Eamonn Sheridan at investinglive.com.