Investing.com - The dollar eased off a one-month low against the other major currencies on Friday, as markets digested the European Central Bank's policy statement on Thursday and turned to U.S. nonfarm payrolls data due later in the day.
EUR/USD slid 0.75% to 1.0860, after rising to one-month highs of 1.0982 on Thursday.
The single curreny rallied after ECB President Mario Draghi said on Thursday that the pace of the quantitative easing program is to remain unchanged at €60 billion, disappointing expectations that the central bank would speed up its bond-buying scheme.
Draghi added that the bank will expand its bond-buying purchase scheme beyond the current cut-off point of September 2016 until the end of March 2017, or beyond if necessary.
The comments came after the ECB's governing council lowered the deposit facility rate to -0.3% from -0.20%, in line with market expectations.
The ECB's main refinancing rate was left unchanged at a record-low 0.05%, in line with market expectations.
Earlier Friday, data showed that German factory orders increased by 1.8% in October, beating expectations for a 1.2% rise. Factory orders fell 0.7% in September, whose figure was revised from a previously estimated 1.7% decline.
USD/JPY added 0.24% to 122.85.
The dollar regained strength after Federal Reserve Chair Janet Yellen strongly indicated to Congress on Thursday that Fed policymakers are likely to vote to raise interest rates at its meeting in two weeks, barring any major shocks to the global economy.
"I currently judge that US economic growth is likely to be sufficient over the next year or two to result in further improvement in the labor market," she said.
Market participants were eyeing a highly-anticipated report on U.S. employment due later in the day for further indications on the strength of the labor market.
Elsewhere, the dollar was steady against the pound and the Swiss franc, with GBP/USD down 0.13% at 1.5122 and with USD/CHF climbing 0.72% to 1.0007.
The Australian and New Zealand dollars were weaker, with AUD/USD down 0.50% to 0.7308 and with NZD/USD shedding 0.22% to 0.6673.
The Australian Bureau of Statistics reported on Friday that retail sales rose 0.5% in October, in line with expectations and after a 0.4% gain the previous month.
Meanwhile, USD/CAD held steady at 1.3344.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.58% at 98.38, off Thursday's one-month trough of 97.60.