The US dollar was lower against most of its peers on Friday afternoon as the markets mulled the possibility of the US Federal Reserve initiating its taper on QE in December.

While the Financial Times carried another article today saying that the Fed could still begin tapering in December, Chicago Fed President Evans, an outspoken dove, said the Fed would likely need 'a couple of meetings to assess' the economy before moving, while Dallas Fed President Fisher, a more hawkish banker, said talk of tapering has 'all been swamped by fiscal shenanigans'.

Friday's calendar proved meagre pickings in terms of data. Overnight, China’s Gross Domestic Product (GDP) flat line at 7.8%, in-line with market expectations. Also released was China’s Industrial Production, which posted 10.2%, outperforming market expectations of 10.1%, though moving lower from its previous level of 10.4% year on year.

The Aussie was the prime beneficiary of this Chinese windfall.

AUDUSD: 0.9666 +0.33%; GBPAUD:1.6737 -0.23%; AUDJPY: 94.52 +0.21%; AUDCAD: 0.9938 +0.21%; AUDNZD: 1.1375 +0.21%; EURAUD: 1.4164 -0.20%

The European trading calendar's only major point of note was in the form of Spanish industrial new orders and the euro managed to stay ahead of most of its peers on Friday.

Earlier this morning, the Spanish Instituto Nacional de Estadistica reported that Industrial New Orders last month fell 5.4% compared to a 1.5% increase the previous month. Analysts had expected the metric to print an increase of 4.2%.

EURUSD: 1.3690 +0.12%; EURCHF: 1.2344 +0.04%; EURGBP: 0.8458 -0.01%.

The afternoon's main data points came from Canada and Statistics Canada reported that the core CPI showed an increase of 0.2% in September; in line both with expectations and the previous month's showing. The CPI however printed a rise of 0.2% compared to the previous month's flatline. Analysts had expected the CPI to print at 0.1%.

USDCAD: 1.0281 -0.11%; EURCAD: 1.4077 +0.01%; CADJPY: 95.09 -0.01%; AUDCAD: 0.9939 +0.22%.

Biggest gainers at the London close: AUDUSD?0.9666?0.33% AUDCHF?0.8715?0.26% AUDCAD?0.9939?0.22% AUDJPY?94.52?0.21% AUDNZD?1.1374?0.20% NZDUSD?0.8498?0.16% GBPUSD?1.6184?0.13% EURUSD?1.369?0.12% NZDCHF?0.7662?0.08% NZDCAD?0.8737?0.06% GBPCHF?1.4592?0.05% EURCHF?1.2344?0.04% NZDJPY?83.09?0.04% CADCHF?0.8767?0.03% GBPCAD?1.6642?0.02% GBPJPY?158.26?0.01% EURCAD?1.4077?0.01%

Biggest losers at the London close: EURAUD?1.4161?-0.23% GBPAUD?1.6741?-0.20% USDJPY?97.78?-0.12% USDCAD?1.0281?-0.11% USDCHF?0.9015?-0.09% EURNZD?1.6107?-0.05% CHFJPY?108.44?-0.04% GBPNZD?1.9042?-0.03% EURGBP?0.8458?-0.01% CADJPY?95.09?-0.01% EURJPY?133.88?-0.01%