In Europe, the broad FTSEurofirst 300 index was flat near a two-year high at 1,165.86 as investors locked in some recent gains before the corporate earnings season gets underway in earnest next week.
The stronger U.S. data and mounting expectations for more aggressive easing by the Bank of Japan (BOJ) next week lifted the dollar past 90 yen to its highest since June 2010, and the euro to its peak since May 2011 of 120.73 yen.
Sources familiar with the BOJ's thinking told Reuters the central bank, under relentless pressure from Prime Minister Shinzo Abe, will consider making an open-ended commitment to buy assets until 2 percent inflation is in sight."This is a big deal," said Jens Nordvig, global head of currency strategy at Nomura Securities in New York."But as always from a trading perspective, it matters greatly what is already priced," he said.
The euro last traded 0.4 percent lower against the yen at 119.62 yen, down from 120.70 earlier - its highest since May 2011.
The euro was also down against the dollar, falling 0.5 percent on the day to $1.3305.
USEFUL LINKS:
China trade suite: http://link.reuters.com/fut96s
China GDP and exports: http://link.reuters.com/zeq95s
U.S. weekly jobless claims: http://link.reuters.com/xew34t
The benchmark 10-year U.S. Treasury note was up 9/32 in price to yield 1.8505 percent.
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