Euro slips as ECB to stay on course with stimulus program

The dollar was firm on Friday following a surge versus its rivals yesterday, as forex investors awaited U.S. economic growth data, which could give a fresh catalyst for direction amid a wider focus on global monetary policy and bond yield direction.

The dollar index, which measures the greenback's strength against a basket of six major currencies, stood little changed at 94.719.

The euro slipped sharply after the European Central Bank kept to its planned timetable to move away from its accommodative monetary policy. EUR/USD stayed close to the previous day's lows around 1.1638.

While the euro's woes lifted the greenback significantly, the U.S. currency enjoyed support from other parts as well.

The 10-year U.S. Treasury note yield extended its overnight rise and touched a six-week high of 2.988 percent as traders braced for a potentially strong reading of U.S. gross domestic product data, set for release later on Friday.

The U.S. economy is expected to have increased at a 4.1 percent annualized rate in the second quarter, following a 2.0 percent pace of growth in the first quarter.

The single currency plunged more than 0.7 percent on Thursday following the ECB's policy meeting. Taking the wind out of euro bulls' sails, the ECB said it would stay on course to end its 2.6 trillion euro stimulus program this year and keep rates at a record low level through the summer of 2019.

The euro earlier on Thursday had advanced in relief after the United States and the European Union agreed to begin talks to lower tariffs, soothing trade concerns.

USD/JPY was 0.2 percent lower at 110.99, unable to hold gains after rising briefly to 111.25.

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