European Trade: Mixed macroeconomic data hit the valuation of European shares in Friday trade. During the early part of the session the Flash PMI report showed that the service and manufacturing sides of the Euro-zone economy expanded during the prior month, after a prolonged period of contraction. This has helped the European markets advanced, with some European indexes surging up to 1%. 

However, at 04:30 EDT a report showed that the U.K economy continued to contract into the third quarter, even though the market expected a positive read. The actual read came in at -0.4%, compared to the expected 0.2%. This report had a strong influence on the financial markets, shedding some of the optimism seen previously. 

The S&P futures had a range of only 4 points during the overnight session, as the market failed to break either way. However, equity futures started to look bearish after the U.K. GDP report, as some market participants are pricing in a slower recovery

Sector Moves: Most sectors advanced in Friday trade, the only exception being the health care companies. Other than this, the gains were spread evenly among the automobile & parts, banks, basic resources and chemicals, with each of these sectors advancing approximately 1%. The automobile & parts sector advanced following the better than expected earnings reports from Kia and Hyundai. 

Economic Moves: The European calendar was loaded with important reports, something that has been reflected in the market reaction to the releases. The market's focus point was the U.K. GDP report, which showed that the economy contracted for the sixth consecutive quarter, the most since records begun. Ahead, investors prepare for Mr. Bernanke to provide a speech at the Federal Reserve Bank of Boston Conference, and for the Existing Home Sales, scheduled at 10am EDT. 

Crude oil for November delivery was recently trading at $81.15 per barrel, lower by $0.10. 

Gold for November delivery was recently trading higher by $1.40 to $1060.00. Over the last two weeks of trading, gold has developed a wide range, in which it continues to move up and down in.

Majors Advance, Pound Tumbles

Overall, after a mixed Asian session, the major pairs are posting small gains against the greenback. The only exception is the pound, which tumbled at a very strong pace after the U.K. GDP disappointed investors. Ahead, traders will focus on the U.S. open, when additional momentum hits the market, which might help the majors to extend the current uptrend.  

The euro (Eur/Usd 1.5050) had an attempt to move higher during the early Asian session, but the pair failed to pull the move off. During the European session, the pair showed bullish signs once again, and now is preparing to test the high reached earlier in the day. In order to break higher, the S&P will need to stay in the green. 

The pound (Gbp/Usd 1.6390) gained 90 pips during the early part of the European session, but it begun tumbling at a very strong pace as the market was heading towards the U.K. GDP report. The Q3 GDP data came in much worse than expected, something that dropped nearly 300 pips off its value. In the medium term, the pound is likely to lag behind the other major pairs. 

The aussie (Aud/Usd 0.9270) fell down to the 0.9230 support area, testing a trend-line that has been holding the market for two weeks now. Helped by the commodity market, the aussie managed to bounce from it, and once again, the is preparing to break above the 0.9300 area. 

The cad (Usd/Cad 1.0505) together with the pound are the only two pairs that did not strengthen to some degree against the dollar in Friday trade. The C$ weakness comes as BoC had recently complained about the strength of the Canadian dollar, threatening to intervene in the market. 

The swissy (Usd/Chf 1.0040) traded again on a very low momentum during the overnight session. Right now, it is trading in close to the break-even line, and just a few pips above the parity level with the dollar, at 1.0000 area.

The yen (Usd/Jpy 91.60) rose 70 pips during the first part of the day, breaking above the 50-day moving average. However, the move was short-lived, since the market retraced most of the uptrend and right now the yen is trading once again below the 50-day moving average, forming a bearish doji-star on the 4-hour chart.