Following the announcement of first quarter U.K. growth data, the U.S. dollar slipped lower in early European trade on Friday, giving up some overnight gains. Sterling, meanwhile, crept higher.

The dollar index which tracks the greenback versus its major pairs edged down 0.1% at 101.785 and is expected to gain just under 1% this week, snapping a two-week losing run.

According to data released on Thursday, the number of Americans submitting new applications for jobless benefits increased to a 112-year high last week, while producer prices only slightly increased in April.

This means that the aggressive monetary tightening cycle being pursued by the U.S. Federal Reserve may be put on hold in June, easing the pressure the dollar has been under for much of the year.

EUR/USD advanced by 0.2% to 1.0930.

GBP/USD ticked up by 0.2% to 1.2535, jumping after data revealed that, despite a surprisingly large decline of 0.3% in March, the U.K. gross domestic output increased by 0.1% in the first three months of 2023.

USD/JPY added 0.2% to 134.83 with the yen poised for modest weekly gains.