Forexpros - The U.S. dollar was broadly lower against its major counterparts on Friday, as upbeat euro zone data and the announcement of Spain's 2013 budget lifted market sentiment, supporting demand for riskier assets. During European morning trade, the dollar was lower against the euro, with EUR/USD climbing advancing 0.34% to 1.2958. The euro extended gains against the greenback after preliminary data showed that consumer price inflation in the euro zone rose unexpectedly in September, ticking up to an annualized rate of 2.7%, from 2.6% the previous month, compared to expectations for a decline to 2.4%. Also Friday, data earlier showed that German retail sales rose by 0.3% in August, less than the expected 0.5% increase, following a 1% drop the previous month. In France, official data confirmed that the economy stagnated in the second quarter, in line with expectations. The reports came after the Spanish government announced on Thursday a crisis budget for 2013, based mostly on spending cuts, in what many analysts see as an effort to pre-empt the likely conditions of an international bailout. Ministry budgets were slashed by 8.9% for next year and public sector wages frozen for a third year as Prime Minister Mariano Rajoy battles to trim one of the euro zone's biggest deficits. Investors remained cautious however, as the results of Spanish bank stress tests were due later Friday. In addition, ratings agency Moody’s was expected to complete a ratings review on Spain. The greenback was steady against the pound, with GBP/USD slipping 0.06% to 1.6626. Elsewhere, the greenback was almost unchanged against the yen, with USD/JPY easing up 0.05% to hit 77.65, and lower against the Swiss franc, with USD/CHF falling 0.38% to trade at 0.9337. The KOF Economic Research Agency said that its economic barometer for Switzerland rose to 1.67 in September, from a reading of 1.59 the previous month, whose figure was revised up from 1.57. In Japan, Markit research group said earlier that the manufacturing purscasing managers' index ticked up to 48 in September from a reading of 47.7 the previous month, but remained in contraction territory for the fourth consecutive month. Industrial production in Japan tumbled 1.3% in August, according to preliminary data, far more than the expected 0.5% drop and following an upwardly revised 1% decline the previous month. A separate report showed that Tokyo's core consumer price inflation, which excludes fresh food, fell more-than-expected by 0.4% in September, after a 0.5% decline the previous month. Official data also showed that household spending in Japan climbed by 1.8% in August, more than the expected 1% rise and following a 1.7% jump the previous month. Meanwhile, Japan's retail sales rose unexpectedly by 1.8% in August, after a 0.8% fall the previous month. In addition, the greenback was broadly lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD edging down 0.21% to 0.9785, AUD/USD edging 0.13% higher to 1.0458 and NZD/USD rising 0.32% to hit 0.8341. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.25%, to trade at 79.44. Later in the day, the U.S. was to release official data on personal income and spending, as well as data on personal consumption expenditures and an index of business activity in the Chicago area. In addition, the University of Michigan was to release revised data on consumer sentiment and inflation expectations.

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