Forex: Friday’s review

The euro fell to a two-month low against the dollar and to the weakest level in nearly a month against the yen since the fall of French industrial production adds speculation that Europe's economic prospects are deteriorating. The data showed that the amount of French industrial production fell by 2.7%, compared to the previous month, while the average forecast was at 1%. We also learned that business confidence in the second-largest economy of the euro area reached a three-year low last month.

The single currency was headed for a weekly decline against the yen and the dollar, as Greek lawmakers prepared to vote on November 11 for the next year's budget. The euro recovered some losses, even in spite of the fact that the index of U.S. consumer confidence rose to a five-year maximum.

The yen reached 79.08 per dollar, which is the strongest level since Oct. 18, but also showed an increase against most other major currencies. Note that the currency is generally stronger in times of political, financial and economic turmoil, and the latest data on the trade surplus means that the country has to rely on foreign creditors. But, despite this growth rate still declined, approaching with up to the opening level of the day.

The dollar index (DXY) rose 0.3% to 81.035, after an early increase to the level of 81.087, which is a two-month high.

Canadian dollar recovered today suffered losses early in the day, after a report on the level of consumer confidence in the United States. Note that the currency is trading above parity with U.S. counterpart for a second day.