Following a closely-watched meeting on Thursday, the European Central Bank said it will end its massive bond purchase scheme by the end of this year, taking its biggest step towards dismantling crisis-era stimulus.
The Canadian dollar traded 0.1 per cent lower at $1.3004 to the greenback, or 76.90 USA cents.
The pan-European Stoxx 600 index ended the day down 1 per cent but still sealed its strongest week in five, however, with investors comforted by the ECB's "dovish" taper of quantitative easing.
Retail sales jumped in May after shoppers spent more at home and garden stores, gas stations and restaurants.
Gains for the greenback came as US data showing the strongest rise in retail sales in six months supported expectations that the Federal Reserve would raise interest rates further. After lifting interest rates to 2pc, its policymakers geared markets up for two more increases in borrowing rates in the USA this year through its dotplot projections.
"This is the most lopsided, mismatched labor market in the nation´s history", said Chris Rupkey, chief financial economist at MUFG Union Bank. In a Bloomberg survey, almost half of economists said they believed that the announcement would not be made before July.
A rare gainer, Tesco rose 1.9 per cent after Britain's largest retailer said a drive to lower prices had boosted its quarterly sales, in a warning for rivals three years after the firm embarked on a turnaround programme.
The currency pair, sensitive to shifts in risk appetite in the broader markets, could be impacted by developments later on Friday in the U.S.
Meanwhile, US/China relations are back in the limelight as US President Donald Trump's expected to pull the trigger on implementing $50bn's worth of tariffs on Chinese imports. The QE part of the announcement is pretty much as expected - an economy no longer obviously in need of emergency monetary care is still being weaned from QE very gradually.
Mexico holds a presidential election on July 1 at a time when relations with its northern neighbour are frosty.
"The slowing in euro-zone data at the start of this year is clear, but this feels like an overreaction from a central bank that we would expect to remain a steady hand with a medium-term outlook".
World oil markets cratered on fears of increased supply, with U.S. Crude on track for its biggest decline since May 15, and to end the week down 1.3 percent.
Germany's 10-year Bunds were offering 0.45 percent compared with 0.49 percent DE10YT=RR before the European Central Bank statement.
The pan-European STOXX 600 and the euro zone were both up 0.3 percent at 1211 GMT, while the exporter-heavy German index gained 0.4 percent as the euro fell to a session low following the ECB's statement.