The dollar and the yen climbed higher at the end of the week against the major currencies as the US equity bourses post steep losses. The greenback pushed the euro below the 1.42-handle and the pound beneath the 1.65-figure. Meanwhile, the yen pushed the euro to 134.22 and the pound to 156.06. By afternoon trading the Nasdaq was lower by over 1.8%, while both the S&P 500 and Dow Jones slipped by more than 1.5%.

The US economic reports released earlier in the session were mixed, with the data consisting of July CPI, industrial production, capacity utilization and the August University of Michigan consumer sentiment. Headline consumer prices missed consensus estimates, sparking fears of deflation with the monthly figure posting a flat reading versus a 0.7% increase in June and declining by 2.1% on an annualized basis from a 1.4% decline in the previous year. The industrial production reading beat forecasts in July, edging up by 0.5% reversing the 0.4% decline in June. Capacity utilization also edged up higher than expected, creeping to 68.5% and up from 68.0% from June. However, the University of Michigan consumer sentiment survey fell short of expectations, drifting to 63.2 in August from 66.0 in July while the expectations component slid to 62.1 from 63.2.

EURUSD fell to 1.4161 as risk aversion dragged the single currency lower across the board. Data released overnight revealed inflationary pressure in the Eurozone to be at a minimum, suggesting that the ECB will likely keep interest rates unchanged in the months ahead.

The pair will encounter interim support at 1.4130, followed by 1.41 and 1.4070. Subsequent floors are eyed at 1.4040, backed by 1.40 and 1.3965. On the upside, resistance is eyed at 1.42, followed by 1.4250 and 1.43.