The euro managed to recover from its overnight lows to end the US trading session up slightly against the US dollar on Friday. European data was positive, as the GfK index of German consumer confidence advanced to a 16-year high of 4.3 in October from a revised reading of 3.8, adding bulk to improving outlooks for the region. Meanwhile, ECB Board member Yves Mersch said that the central bank will not implement an exit strategy until “functioning of the interbank market has been secured,” and warned that an early exit could lead to a double-dip recession as he sees a risk for lower growth potential in the near future. At the same time, Mr. Mersch expects to see a “moderate recovery” in 2010 as Germany and France emerge from the recession, but went onto say that policy makers cannot rule out the risk of a credit crunch as the financial system remains fragile. The comments suggests the ECB will maintain its current policy over the near-term in order to encourage a sustainable recovery, and is likely to keep rates unchanged at 1.00 percent as long as inflation pressures remain in check.