The U.S. dollar traded lower against the most major currencies after the number of initial jobless claims from the U.S. The number of initial jobless claims in the week ending November 29 in the U.S. fell by 17,000 to 297,000 from 314,000 in the previous week, in line with expectations. The previous week's figure was revised to 314,000 from 313.000.

The euro rose against the U.S. dollar after the European Central Bank's (ECB) press conference. The ECB President Mario Draghi said at a press conference on Thursday that the central bank will decide early next year whether to add further stimulus measures to boost inflation in the Eurozone.

Draghi pointed out that the central bank had discussed various options of quantitative easing (QE).

The central bank kept its interest rate unchanged at 0.05%.

The ECB cut its inflation and growth forecasts. Inflation forecast for the Eurozone was lowered to 0.5% in 2014 from the previous estimate of 0.6%, to 0.7% in 2015 from the previous estimate 1.1% and to 1.3% in 2016 from the previous estimate 1.4%.

The ECB also cut its economic growth forecast for the Eurozone. The growth was lowered to 0.8% 2014 the previous estimate of 0.9%, to 1.0% in 2015 from the previous estimate of 1.6% and to 1.5% in 2016 from the previous estimate of 1.9%.

The British pound traded higher against the U.S. dollar. The BoE kept its interest rates unchanged at 0.5% and its asset purchase program unchanged at £375 billion. This decision was widely expected.

The Halifax house price index for the U.K. rose 0.4% in November, after a 0.4% decline in October.

On a yearly basis, the Halifax house price index for the U.K. climbed 8.2% in November, after a 8.8% rise in October.

The Canadian dollar traded lower against the U.S. dollar despite the better-than-expected Canadian Ivey purchasing managers' index. Canada's seasonally adjusted Ivey purchasing managers' index rose 56.9 in November from 51.2 in October. Analysts had expected the index to increase to 53.2.

The New Zealand dollar increased against the U.S. dollar in the absence of any major economic reports from New Zealand. In the overnight trading session, the kiwi traded lower against the greenback due to stronger U.S. currency.

The Australian dollar traded higher against the U.S. dollar. In the overnight trading session, the Aussie fell to 4-year lows against the greenback despite the better-than-expected economic data from Australia. Retail sales in Australia rose 0.4% in October, exceeding expectations for a 0.1% increase, after a 1.3% gain in September. September's figure was revised up from a 1.2% rise.

Australia's trade deficit narrowed to A$1.32 billion in October from A$2.24 billion in September. September's figure was revised up from a deficit of A$2.26 billion. Analysts had expected the trade deficit to decline to A$1.81 billion.

The Japanese yen traded higher against the U.S. dollar in the absence of any major economic reports from Japan.