The euro has dropped sharply after the European Central Bank said it will end its bond-buying stimulus program after December.
Gold prices are trading lower early Friday, putting it in a position to close lower for the week.
Analysts said that although the expected announcement would probably not be a total surprise to markets - an initial list was released by Washington a few months ago - it would still make investors concerned that the window for averting a trade war may be closing.
The Euro slipped against other currency majors, tumbling by it's biggest amount since 2016 versus the Dollar, with a 1.9% fall.
In the May statement, however, the U.S. central bank said that "economic activity has been rising at a moderate rate". Many markets in Asia were closed on Friday for holidays celebrating the end of Ramadan.
"With the statement that key interest rates will remain at historically low levels until the summer of 2019, the European Central Bank has removed any fantasy of an earlier rate hike".
The Pound spent much of Wednesday morning trading on the back foot following yesterday's inflation miss, which remained unrevised in May after analysts had expected an upward revision.
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Mr Draghi said: "With longer term inflation expectations well anchored, the underlying strength of the Euro area economy and the continuing ample degree of monetary accommodation provide grounds to be confident that the sustained convergence of inflation towards our aim will continue in the period ahead and will be maintained even after a gradual winding down of our net asset purchases".
The pan-European Stoxx 600 index ended 1.2 per cent higher as the Xetra Dax in Frankfurt jumped 1.7 per cent and the FTSE 100 in London gained 0.8 per cent.
"The Governing Council expects the key European Central Bank interest rates to remain at their present levels at least through the summer of 2019 and in any case for as long as necessary to ensure that the evolution of inflation remains aligned with the current expectations of a sustained adjustment path", the European Central Bank said in a statement.
The bank's unexpectedly dovish decision overshadowed its statement that it aimed to wrap up its crisis-era stimulus program at the end of this year. It was also not deterred by questions about the new, populist government in Italy.
Just hours before the ECB's announcement, the US Federal Reserve hiked interest rates for the second time in 2018, bringing into sharp focus the fact that the flow of easy money in Europe and America over the past decade is gradually ending.
Oil prices were little changed as investors eyed a key Organisation of Petroleum Exporting Countries meeting in Vienna.
USA crude fell 0.3 percent to $66.44 per barrel and Brent was last at $75.95, down 1.03 percent on the day.