The euro erased its earlier losses and climbed back above 1.1300, as the dollar weakened on new economic data that reinforced expectations of multiple Fed rate cuts this year. US GDP contracted at an annualized rate of 0.2% in the first quarter, slightly better than the initial 0.3% decline.

Despite this, household consumption grew at a slower pace, net trade weighed more heavily than expected, and corporate profits fell during the quarter.

At the same time, the US Court of International Trade annulled the international reciprocal tariffs imposed by President Donald Trump and ordered the administration to stop collecting them. This decision eased investors' concerns about an escalating trade war.

On the monetary policy front, the ECB is expected to announce its decision next week. While many analysts are anticipating a further rate cut, some ECB officials have recently adopted a firmer tone, advocating a pause after the latest rate cuts.