Dollar Higher in Light Trade

EUR-USD faded further during Friday's European session, with stop loss selling along with an ongoing perception that M&A flows will continue to weigh on the EUR soured sentiment once again.

New York trade remained quiet, the pair spending much of the day within a 20 pip range, rallying to test the 0.8800 late in the day. Barrier options related bids at 0.8750 contained the downside, but offers steadily reappeared at the 0.8775-85 area until sources reported customer buying ahead of this weekend's GSCI re-jiggering.

Overall, the market continues to have the "sell the rally" mindset. USD-JPY posted most its gains during Friday's Asian session, but U.S. investment house buying ultimately took the pair to the 123.80 region before week end profit taking stepped in.

AUD-USD tested 0.5300, but sellers emerged at the psychological level. USD-CAD was hit on a combination of option and stop loss selling.

Next week, nothing on tap until Tuesday, Redbook and BTM-UBS sales data due, while new home sales are out Thursday. Friday will see revised Q1 GDP data, S&P seeing the growth down to 1.3% from the flash estimate of 2.0%.

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