After spending the first half of the day moving sideways in a tight range of around 1.1800, the EUR/USD pair gained traction and climbed to a daily high of 1.1831 before reversing its direction. As of writing, the pair was losing 0.25% on a daily basis at 1.1763. As expected, the European Central Bank (ECB) left the interest rates on the main refinancing operations, the marginal lending facility, and the deposit facility unchanged at 0.00%, 0.25%, and -0.50%, respectively. In its policy statement, the ECB revised its forward guidance to note that it will allow a temporary overshoot of inflation before taking policy action.

In addition to the renewed EUR weakness, the USD's resilience caused EUR/USD to continue to push lower during the American session. With Wall Street's main indexes struggling to extend the two-day rally on Thursday, the US Dollar Index edged higher and was last seen posting small gains at 92.87. The data from the US revealed on Thursday that the Initial Jobless Claims rose to 419,000 in the week ending July 17, compared to analysts' estimate of 350,000. On Friday, the IHS Markit will release the preliminary Services and Manufacturing PMI report for the euro area, Germany and the US.