After a spending the majority of the week in the doldrums, the greenback staged a modest recovery against major counterparts on Friday after a down tick in consumer confidence had investors once again on the back foot. The dollar found strength as the Reuters/Michigan Consumer Sentiment Index for October fell to 69.4 from 73.5 in September. This seemed to dull the optimism gained by a rise in Industrial Production which surpassed expectation rising 0.7 percent for the month of September, versus market consensus of a 0.1 percent rise.

We also saw better than expected Treasury International Capital (TIC) flows provide support for the greenback on Friday showing a rise to US$26.8b representing increase of US$13.3B from July. US Capacity Utilisation figures for September also came in stronger rising to 70.5 percent up from 69.9% in August.

The pound was the exception; with the UK currency continuing to ride the latest burst of momentum on speculation the Bank of England may suspend the quantitative easing program.  Sterling rose to highs of US$1.6400 in the session but has seen some mild resistance in early trade today opening at US$1.6310.

Across the channel we saw Euro-Zone Trade Balance figures for August fail to meet expectation recording a seasonally adjusted EUR1b surplus, versus a downwardly revised EUR12.3b for July. The consensus was for a rise of EUR4.9b. Euro took some mild losses against the greenback and similar pattern formed with the Aussie dollar had which earlier in the session climbed to fresh 14 month highs of US$.9270. The Aussie dollar is currently trading at US$.9148 representing a decline of US$.0015 from Fridays close.