The bank on Thursday slashed its forecast for eurozone economic growth this year to 1.1 percent from 1.7 percent previously.
The euro and the Swedish crown languished near multi-year lows on Friday, hurt by dovish signals from the European Central Bank as traders braced for fresh volatility ahead of U.S.jobs data later in the day.
Adding to the selling pressure was data showing Chinese exports plunged more than 20 percent last month, while imports were also sharply down both missing expectations by some margin.
Asian stocks also shuddered lower after shockingly weak export data from China heightened market fears about global growth. For the week, the Dow and S&P ended down 2.2 percent while the Nasdaq lost 2.5 percent. "The reason why market and policy makers were so surprised by the downdraft in recent data was because of the trade uncertainty".
The pound, meanwhile has stabilised after Prime Minister Theresa May urged the European Union to concede on changes to the Irish backstop, saying the European Union could have a "big impact on the outcome" of the "meaningful vote" on Tuesday next week. West Texas oil futures slipped toward US$56 a barrel in NY. The eurozone economy grew by a weak 0.2 percent in the fourth quarter of a year ago, down from 0.4 percent in the first two quarters.
The U.K.'s FTSE 100 Index dropped 0.7 percent.
On the week, the dollar index gained 0.8 percent.
Chinese stocks fell the most in almost five months after the nation's biggest brokerage issued a rare sell rating on the People's Insurance Company (Group) of China, likely signalling the government's desire to slow a market that has outperformed global rivals over the past two months.
Friday's rise reduced the euro's weekly loss against the dollar to 1.1 percent.
Elsewhere, palladium slipped 0.7% to $1,516.87 USA per ounce and was on track for its biggest weekly decline since the week ended November 23.
The greenback was effectively flat at 111.63 yen after dipping 0.15 percent against its Japanese peer overnight amid risk aversion in broader markets.
In early trade, London, Paris and Frankfurt each fell 0.7 percent. Italy's 10-year government bond yield touched its lowest level in just over a month at 2.661% and was last down 4 basis points on the day.
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