Comments from European Central Bank Governing Council member Martins Kazaks that the central bank is likely to scale back the pace of its emergency bond buying program in June lifted the euro in the European session on Friday.
"If financial conditions remain favorable, in June we can decide to buy less," Kazaks, who also heads Latvia's central bank, said in an interview on Thursday.
"Flexibility is at the very core of PEPP."
Kazak added that the central bank cannot react to all increases in market rates.
Kazaks' remarks hinting at a slowdown in the pace of PEPP purchases sent Eurozone bond yields higher.
European stocks advanced as upbeat regional data boosted hopes of a stronger economic recovery.
The latest U.S. jobs data will be out later today, with economists expecting employment to jump by 978,000 jobs in April after an increase of 916,000 jobs in May. The unemployment rate is expected to dip to 5.8 percent from 6.0 percent.
In economic releases, German industrial production grew 2.5 percent month-on-month in March, reversing a 1.9 percent fall in February, Destatis reported.
Output was forecast to climb 2.3 percent. On a yearly basis, industrial production advanced 5.1 percent, in contrast to a 6.8 percent fall in February.
Another report revealed that German exports increased 1.2 percent on a monthly basis in March, while economists had forecast the growth to ease to 0.5 percent from 1 percent in February. Year-on-year, exports advanced 16.1 percent, reversing a 1.2 percent fall in February.
A new study suggested that hiring in the U.K. surged last month. The IHS Markit/CIPS Construction Purchasing Managers' Index (PMI) eased to 61.6 in April from 61.7 in March.
The euro was up against the yen and the greenback, at a 4-day high of 131.94 and a 1-week high of 1.2091, respectively. This followed the currency's earlier lows of 131.48 against the yen and 1.2053 versus the greenback. The currency is likely to locate resistance around 133.00 against the yen and 1.22 against the greenback.
The euro approached a 2-day high of 1.0975 against the franc, off its early 2-1/2-month low of 1.0935. The currency may face resistance around the 1.13 level.
The euro rose to 1.5553 against the aussie, 1.6746 against the kiwi and 1.4728 against the loonie, from its early lows of 1.5485 and 1.6657 and more than a 1-year low of 1.4645, respectively. The euro is seen finding resistance around 1.57 against the aussie, 1.72 against the kiwi and 1.49 against the loonie.
The European currency recovered from an early low of 0.8665 against the pound, with the pair trading at 1.4728. On the upside, 0.88 is likely seen as its next resistance level.
Survey results from IHS Markit showed that UK construction sector logged a robust growth in April with continued recoveries seen in civil engineering activity, commercial work and house building.
The Chartered Institute of Procurement & Supply construction Purchasing Managers' Index came in at 61.6 in April, down only fractionally from March's six-and-a-half year peak of 61.7.
Looking ahead, U.S. and Canadian jobs data and Canada Ivey PMI, all for April, as well as U.S. wholesale inventories and consumer credit for March will be out in the New York session.