The U.S. dollar declined against the other major currencies in early European deals on Thursday, as traders look forward to data on weekly jobless claims and producer price inflation, due later in the day, amid concerns about strength of the economy.
The U.S. jobless claims are expected to have risen by 273,000 in the week ended May 9, up from 265,000 claims reported in the previous week.
The producer price inflation is seen rising to 0.1 percent on a monthly basis in April, slower than last month's 0.2 percent increase. Dismal retail sales data on Wednesday reinforced speculation that the Federal Reserve would not raise interest rates any time soon.
The retail sales were flat in April, contradicting expectations for an increase of 0.2 percent.
The currency was also hit hard after the data. On Wednesday, the dollar fell 0.60 percent against the yen, 1.33 percent against the franc, 1.27 percent against the euro and 0.49 percent against the pound.
The greenback hit near a 3-month low of 1.1429 against the euro and a weekly low of 0.9117 against the franc, compared to Wednesday's closing values of 1.1353 and 0.9165, respectively. If the greenback extends slide, it may challenge support around 1.15 against the euro and 0.90 against the franc.
The greenback slipped to a 2-week low of 118.88 against the yen, from an early high of 119.33. The next possible support for the greenback may be located around the 118.00 mark. At yesterday's close, the pair was quoted at 119.13.
The greenback declined to nearly a 6-month low of 1.5788 against the pound, and has been steady shortly thereafter. This is down by 0.29 percent from Wednesday's closing value of 1.5743. The greenback is seen finding support near the 1.60 area.
Besides U.S. data, Canada new housing price index for March is slated for release in the New York session.
At 10:00 am ET, European Central Bank President Mario Draghi will give the Michel Camdessus Central Banking Lecture at the International Monetary Fund in Washington D.C.
At 3:30 pm ET, Bank of Canada Deputy Governor Lynn Patterson is expected to speak at the Chartered Financial Analysts Society in Vancouver, Canada.
