Friday economic data in Europe and the US was mostly positive.
Along with signals from Chancellor Merkel and also the ECB that a Greek deal might be close to materializing on Monday, investors were in more positive sentiments. Pushing the euro as high as 1.3997. Gold continued its descent as investors moved from safety to more risky assets.
Euro-zone construction output moved up for the second month running in December, but that wasn't enough to stop a contraction in the fourth quarter overall. The European Union's statistics agency said overall construction output in the 17 countries that use the euro rose.
Adding to investors relief was news the emergency overnight borrowing from the European Central Bank fell further Thursday, illustrating the reduced market tensions since the ECB flooded the banking system with liquidity via its first three-year loan operation.
Swedish economic growth in 2012 will probably be much lower than the government's 1.3% forecast last autumn, Swedish Finance Minister Anders Borg told reporters Friday. The Riksbank and the commercial banks expect growth of around half a percent.
Retail sales in the U.K. rose last month, government data showed on Friday. In a report, issued by the National Statistics said that retail sales rose to 0.9%, from 0.6% in the preceding month.
The US economy is expected to continue strengthening, possibly picking up this spring and summer, the Conference Board said Friday as it detailed its index of leading economic indicators grew 0.4% in January, led by the interest-rate spread and manufacturing hours.
The underlying rate of U.S. inflation accelerated by the fastest pace in four months in January, the Labor Department said Friday. The consumer price index increased 0.2%, pushed by the first increase in gasoline prices since September. Food prices rose 0.2 % for the second straight month. The core CPI index, excluding food and energy costs, was up 0.2% in January. Economists were expecting the CPI to rise 0.3% in January after remaining flat in the prior month. The core rate was expected to rise 0.2% after rising 0.1% in the previous month.
The government's consumer price index rose 0.2% in January, just under the 0.3% expected by analysts. The core rate that excludes volatile food and energy prices held at 0.2%, in line with expectations
Americans' cost of living rises 0.2% in January, driven higher by the first increase in energy prices in four months, according to Labor Department data.
Overall Friday was a very optimistic day for the global markets.
EUR/CHF Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3