DXY Caps Strongest Week in Six

EUR/GBP closed in on the lowest levels for nearly two months, with the cross narrowing the gap with the 200-dma at 0.8906 into the Friday close. Signs of further progress made between EU and UK negotiators are making the prospects for a deal before November 15th more likely, and helping GBP find support on dips.

USD demand into the October month-end fix put most major pairs under pressure into the close, but this swiftly dissipated once the orders were absorbed.

This was less evident in the EUR, however, which shrugged off strong French, Italian, German and Spanish GDP data, taking heed of Lagarde's communications at the ECB press conference Thursday that the bank are likely to 'recalibrate' policy in December. This helped the greenback secure the best weekly performance in six.

It's difficult to play down the importance of numerous risk events in the coming week, with the Presidential election, FOMC rate decision and Nonfarm Payrolls report all to contend with. Rate decisions from the RBA, BoE and Norges Bank are also due.