The Euro was trading at 1.2425 after the White House said that some countries may be exempted from planed imports tariffs, as well as the European Central Bank kept interest rates unchanged as expected, and the markets will now turn to the press conference of Mario Draghi, waiting for any signals about the future of monetary policy.
The euro hit a three-year high of 1.2556 in February, as investors headed towards the single currency, expecting the ECB to give signals about plans to exit the monetary stimulus program.
On the other hand, the dollar index fell from a two-day high of 89.82 to currently settle at 89.50 levels. US dollar fell sharply following the resignation of Jarrah Cohn, the White House's economic adviser, who was the bulwark against Trump protectionist policies.
The Canadian dollar was below the 1.30 level after failing to overtake it following the possibility that Canada and Mexico would be exempted from the tariff to be imposed on steel imports.
On Friday, markets are waiting for US employment data which are expected to continue showing improvement, also Canadian employment data will be released. In addition, the markets will be focus on the Bank of Japan's monetary policy decision, which is expected to keep its policy unchanged waiting for further inflation rising.
