By FX Empire.com
Optimism spread through European and U.S. markets on Friday after strong retail sales figures from the United States boosted confidence in markets. Moreover, strong earnings from U.S. companies including Google also supported confidence and boosted demand for higher yielding assets, sending equity indexes and commodities higher.
In Europe though, the Slovak Parliament approved expanding the size and power of the European Financial Stability Facility EFSF in line with projections.
As for FOREX markets, strong retail sales overshadowed falling consumer confidence and boosted demand for higher yielding currencies, as the U.S. dollar fell against major currencies.
Stocks in the United States were higher by opening on Friday, where the Dow Jones Industrial Average was up by nearly 0.90% to trade around 11,580, while the S&P 500 index was up by nearly 1.10% to trade around 1216. European stock indexes were also higher before closing on Friday, where FTSE 100 was up by nearly 1.25% to trade at 5471 and the DAX was up by nearly 1.25% to trade around 5988.
The U.S. dollar fell against a basket of major currencies on Friday, where the U.S. dollar index was trading at 76.59, compared with the opening level at 77.14. The Euro gained against the Dollar, where the EUR/USD pair traded around $1.3870, compared with the opening level at $1.3752, the British Pound also gained against the Dollar, where the GBP/USD pair traded around $1.5824, compared with the opening level at $1.5743, and the U.S. dollar gained against the Japanese Yen, where the USD/JPY pair was trading around 77.26, compared with the opening level at 76.90.
Gold prices were little changed on Friday to trade now around $1670 an ounce and crude oil prices rose to trade around $86 a barrel.
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