The U.S. dollar traded mixed against the most major currencies after the mostly weaker-than-expected U.S. economic data. The number of initial jobless claims in the week ending January 31 in the U.S. increased by 11,000 to 278,000. The previous week's figure was revised down to 267,000 from 265.000. Analysts had expected a decline to 277.000.

The U.S. trade deficit widened to $46.56 billion in December from a deficit of $39.75 billion in November. That was the lowest level since November 2012. November's figure was revised down from a deficit of $39.0 billion.

Analysts had expected a trade deficit of $38.0 billion.

The decline of a deficit was driven by falling oil prices, a stronger greenback and a strengthening U.S. economy.

Productivity in the U.S. non-farm businesses fell at a 1.8% annual rate in the fourth quarter, missing expectations for a 0.9% increase, after a 3.7% gain in the third quarter. The second quarter's figure was revised up from a 2.3% rise.

Unit labour costs increased 2.7% in the fourth quarter, exceeding expectations for a 1.1% rise, after a 2.3 decline in the third quarter. The third quarter's figure was revised down from a 1.0% fall.

The euro traded higher against the U.S. dollar as concerns over Greece's further bailout policy eased. The new Greece government plans to renegotiate the terms of its bailout.

Earlier, the European Central Bank said that it would not accept Greek government bonds.

German seasonal adjusted factory orders rose 4.2% in December, exceeding expectations for a 1.4% increase, after a 2.4% drop in November.

The British pound traded higher against the U.S. dollar after the Bank of England's (BoE) interest rate decision. The BoE kept its interest rates unchanged at 0.5% and its asset purchase program unchanged at £375 billion. This decision was widely expected.

Analysts expect that the BoE will start to raise interest rate later in early 2016.

The Canadian dollar traded higher against the U.S. dollar after the better-than-expected Canadian trade data. Canada's trade deficit widened to C$649 million in December from a deficit of C$335 million in November. November's figure was revised up from a deficit of C$644 million. Analysts had expected a trade deficit of C$1.0 billion.

The decline was driven by falling oil prices.

The Swiss franc traded higher against the U.S. dollar. The SECO consumer climate index for Switzerland increased to -6 in the fourth quarter from -11 in the previous quarter, beating expectations for a decrease to -13.

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

The Australian dollar traded mixed against the U.S. dollar. In the overnight trading session, the Aussie traded higher against the greenback despite the weaker-than-expected retail sales data from Australia. Retail sales in Australia rose 0.2% in December, missing expectations for a 0.3% increase, after a 0.1% gain in November.

Australia's new home sales fell 1.9% in December, after a 2.2% gain in November.

The Japanese yen traded lower against the U.S. dollar. In the overnight trading session, the yen traded higher against the greenback in the absence of any major economic reports from Japan.