The dollar index fell to a 1-week low on Friday, down by -0.15%. US job cuts surged by 175% in October, boosting the outlook for Fed interest rate cuts. The dollar was pressured by weak consumer sentiment data and ongoing US government shutdown.

The euro rallied to a 1-week high on Friday, up by +0.15%, supported by a weaker dollar and better-than-expected German trade news. Central bank divergence favors the euro, with the ECB mostly done cutting rates while the Fed is expected to cut rates further.

USD/JPY rose by +0.25% on Friday as the yen fell from a 1-week high against the dollar. Japanese household spending rose less than expected in September. Markets are pricing in a 49% chance of a BOJ rate hike at the next policy meeting.

Precious metals settled higher on Friday, with gold up +0.47% and silver up +0.40%. A weaker dollar and slide in equity markets supported safe-haven demand. Central bank buying of gold remains strong, with China’s PBOC boosting reserves for the twelfth consecutive month.

Chinese trade data showed weaker-than-expected exports and imports in October. This is a negative factor for economic growth and industrial metals demand. Precious metals continue to face pressure from long liquidation after reaching record highs in mid-October.

Read more at Yahoo Finance: Dollar Slips on Economic Woes