The euro advanced its most major counterparts in the European session on Friday amid risk appetite, as U.S. treasury yields climbed and China's central bank slashed the reserve requirement ratio for banks by 50 basis points.

The recovery in treasury yields helped ease some of the concerns about the pace of the economic recovery from crisis.

The yield on the benchmark 10-year treasury note rose 5 basis points to 1.336 percent.

The RRR cut will inject 1 trillion yuan into the banking system.

The PBOC said that it will maintain a prudent monetary policy and keep liquidity reasonably stable.

European Central Bank policy makers broadly agreed that economic activity could accelerate in the second half of the year after lifting of more containment measures, according to the account of the monetary policy meeting the governing council held on June 9 and 10.

"In view of the better outlook for growth and inflation and the associated upside risks, it was, however, also argued that, to provide the same degree of accommodation, asset purchases should be scaled back somewhat," minutes showed.

Policymakers indicated that the broad parameters for PEPP purchases would continue to be decided on the basis of a quarterly joint assessment of financing conditions and the inflation outlook.

The euro edged up to 1.0855 against the franc and 1.1864 against the greenback, up from Thursday's closing values of 1.0833 and 1.1842, respectively. The euro is seen locating resistance around 1.10 against the franc and 1.20 versus the greenback.

The euro climbed to a 2-day high of 130.59 against the yen, compared to Thursday's close of 129.93. Next key resistance for the euro is likely seen around the 134 level.

In contrast, the euro weakened to 1.5859 against the aussie and 1.4794 versus the loonie, from yesterday's closing values of 1.5933 and 1.4837, respectively. On the downside, 1.56 and 1.46 are possibly seen as its next support levels against the aussie and the loonie, respectively.

The euro pulled back from an early more than 2-week high of 1.7099 against the kiwi, with the pair worth 1.6971. At yesterday's trading close, the pair was quoted at 1.7036. Immediate support for the currency is likely seen around the 1.68 level.

The European currency was trading lower at 0.8570 against the pound. The euro-pound pair had ended yesterday's trading session at 0.8588. The euro may face support around the 0.84 region.

Data from the Office for National Statistics showed that the UK economy expanded for the fourth consecutive month in May, albeit at a slower pace and remained below the pre-pandemic levels.

Gross domestic product grew 0.8 percent month-on-month in May, but slower than the revised 2 percent growth posted in April and the economists' forecast of +1.5 percent. Nonetheless, GDP rose for the fourth straight month.

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