The U.S. dollar advanced against European major counterparts in European deals on Friday, as positive U.S. data released overnight indicated that the economy is strong enough to overcome headwinds of a global slowdown.

While U.S. existing home sales climbed to a 1-year high in October, the Philadelphia Federal Reserve's regional manufacturing index jumped to its highest level in over twenty years in November.

Meanwhile, first-time claims for U.S. unemployment benefits fell modestly in the week ended November 15th, point to strengthening labor market conditions.

The U.S. leading indicators rose more than anticipated in the month of October, with an increase of 0.9 percent. Also, the U.S. consumer price inflation remained at 1.7 percent on year in October, beating economists forecast of 1.6 percent growth.

These data reinforced expectations that the U.S. economy is showing signs of sustained growth, contrasting with weakness in Europe and Asia.

Signs of strong economic growth also provides ample room for Fed to hike rates sooner-than-forecast. Market participants currently expect the Fed to raise rates in September 2015.

The greenback hit 0.9675 against the franc, its strongest since November 14. Next possible resistance for the greenback-franc pair is seen around the 0.98 zone.

The greenback that ended Thursday's trading at 1.2538 against the euro strengthened to a weekly high of 1.2423. On the upside, 1.23 is seen as the greenback's next possible resistance level.

The firm anchoring of inflation expectations is critical under any circumstances, European Central Bank President Mario Draghi said.

The inflation situation in the euro area has also become increasingly challenging, Draghi said at the Frankfurt European Banking Congress. He observed the risk of too prolonged period of low inflation becoming embedded in inflation expectations.

The greenback rose to a 2-day high of 1.5625 against the Sterling, up from yesterday's closing value of 1.5691. Continuation of the greenback's uptrend may see it challenging resistance around the 1.55 zone.

British government borrowing in October decreased from a year ago and was in line with economists' expectations, figures from the Office for National Statistics showed.

Public sector net borrowing excluding interventions was GBP 7.7 billion in October, down 2.4 percent from GBP 7.9 billion in th same month last year.

On the flip side, the greenback held steady against the yen, after falling to a 2-day low of 117.34 at 9:15 pm ET. The pair was worth 118.18 at yesterday's close.

Japan's finance minister Taro Aso said in a speech that the country's currency has been weakening too fast over the past week.

He said that sudden changes, whether up or down, are not welcome.

Looking ahead, Canada's consumer price index for October is due in the New York session.

The Bank of England's David Miles speaks at the Festival of Economics in Bristol at 2:45 pm ET.

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