The US dollar continued to trend higher on Friday and hit eight-month high against its major counterparts, as hopes for a US rate hike towards the end of the year maintain strong demand for the dollar. The US dollar Index peaked at 98.72 on Friday, gaining 0.44% from opening and being on track for the second bullish weekly close.
On the other side, The Euro and Sterling remain under strong pressure. Yesterday’s remarks from ECB’s chief Mario Draghi, regarding QE program, were supportive but did not manage to undermine strong Euro’s bears. The single currency hit fresh multi-month low at 1.0868 on Friday, down 0.54% from the opening and eyeing next targets at 1.0800 zone. The Euro is also going for the second strong bearish weekly close that confirms strong short-term bearish structure.

British pound took out important support at 1.2200 against the dollar that opens way towards next strong support at 1.2134. Cable is in red for the third day and lost total of 1.31% from Wednesday’s peak at 1.2330 and was down 0.65% from Friday’s opening. Pound declined after U.K. Office for National Statistics earlier reported that public sector net borrowing rose by 10.12 billion pounds in September, compared to expectations for an increase of only 8.20 billion.
Public sector net borrowing rose 10.33 billion pounds in August, whose figure was revised from a previously estimated gain of 10.05 billion.
The dollar was also lower against yen, down 0.36% for the day, but is so far holding above strong support at 103.50.
Australian dollar extended below its low at 0.7619, posted on at Thursday’s strong fall and hit fresh correction low at 0.7602 on Friday, being down 1.68% from Thursday’s peak at 0.7732 and losing 0.28% from opening today.
Spot Gold remains at the front foot after pullback from fresh high at $1274 found support at $1260 and turning focus higher on renewed strength. Gold is track for bullish weekly close, the fist after three weeks in red that signals basing attempt above fresh multi-month low at $1241.
Crude oil lost traction on Friday and pressures again $50 threshold, after rallying to session high at $51.00 on comments that Russia reiterated its commitment to contribute to global oil output reduction. However, gains were limited by strengthening US dollar and oil price remains on track for weekly close in red, the first one after four consecutive bullish weeks.

European stocks were at the back foot on Friday. FTSE 100 and DAX were down 0.26%, while CAC40 lost 0.46% from opening on Friday.
Wall Street opened lower on Friday, maintain negative tone from Europe and weighed by disappointing GE forecast, but stronger numbers from Microsoft and McDonald’s are expected to partially reduce negative impact.
Dow Jones and S&P500 were down 0.23% on opening, while Nasdaq showed marginal loss of 0.06% on Friday’s opening., Market Analysis