2018.10.2609:58:00UTC+00Euro, Pound Fall Amid Risk Aversion On Disappointing Earnings

The euro and the pound drifted lower against their major counterparts in the European session on Friday, as European shares declined, tracking a plunge in U.S. stock futures, as Amazon and Alphabet's earnings missed forecasts.

Google parent Alphabet missed analysts' quarterly revenue estimates for the first time in at least two years, while Intel reported better-than-expected third-quarter earnings and full-year guidance.

Amazon's sales for the three months ending September and its sales forecast for the upcoming fourth quarter both came in below Wall Street estimates.

Worries about corporate earnings added to concerns about global growth and trade.

Survey data from market research group GfK showed that Germany's consumer confidence is set to remain stable in November.

The forward-looking consumer sentiment index came in at 10.6 in November, the same as seen in October. The score was forecast to drop to 10.5.

The euro declined to more than 2-month lows of 1.1336 against the greenback and 126.94 against the yen, from its early highs of 1.1384 and 127.89, respectively. The next possible support for the euro is seen around 1.12 against the greenback and 125.00 against the yen.

The single currency edged down to 1.1355 against the franc and 0.8862 against the pound, off its early high of 1.1383 and a session's high of 0.8863, respectively. The euro is likely to test support around 1.12 against the franc and 0.86 against the pound.

The euro retreated to 1.7506 against the kiwi and 1.6101 against the aussie, from its previous 8-day high of 1.7588 and a 2-day high of 1.6189, respectively. If the euro falls further, it may find support around 1.73 against the kiwi and 1.59 against the aussie.

The pound also fell, touching more than a 2-month low of 1.2777 against the greenback, 1-1/2-month low of 143.08 against the yen and more than a 3-week low of 1.2794 against the franc, reversing from its early highs of 1.2826, 144.20 and 1.2834, respectively. The pound is seen finding support around 1.26 against the greenback, 142.00 against the yen and 1.26 against the franc.

The U.S. dollar strengthened against its most major counterparts amid its safe-haven status.

Data from the Commerce Department showed that U.S. economic growth slowed in the third quarter, although the pace of growth still exceeded economist estimates.

The Commerce Department said real gross domestic product advanced by 3.5 percent in the third quarter after surging up by 4.2 percent in the second quarter. Economists had expected GDP growth to slow to 3.3 percent.

The greenback strengthened to 1.3159 against the loonie, its strongest since September 11. On the upside, 1.33 is likely seen as the next resistance level for the greenback.

The greenback spiked up to more than a 3-month high of 1.0027 against the franc, after having dropped to 0.9983 at 3:15 am ET. Next key resistance for the greenback is seen around the 1.03 level.

On the flip side, the greenback fell back to 111.90 against the yen, down from a high of 112.44 touched at 9:15 pm ET. The greenback is poised to find support around the 110.00 region.

Looking ahead, the University of Michigan's final consumer sentiment index for October is due shortly.

At 10:00 am ET, European Central Bank President Mario Draghi speaks at the inauguration of the Lamfalussy Lecture hosted by the National Bank of Belgium in Brussels.