The U.S. dollar traded higher against the most major currencies after the mixed U.S. economic data. The number of initial jobless claims in the week ending January 24 in the U.S. fell by 43,000 to 265,000 from 308,000 in the previous week.

Pending home sales in the U.S. declined 3.7% in December, missing expectations for a 0.6% increase, after a 0.6% gain in November. November's figure was revised down from a 0.8% rise.

That was the biggest monthly decrease since December 2013.

The euro traded lower against the U.S. dollar. German preliminary consumer price index dropped 1.0% in January, missing expectations for a 0.7% decline, after a flat reading in December.

On a yearly basis, German preliminary consumer price index decreased to -0.3% in January from 0.2% in December, missing forecasts for a flat reading. That was the lowest level since July 2009.

The number of unemployed people in Germany declined by 8,000 in January, missing expectations for a 13,000 decline, after a 25,000 drop in December. December's figure was revised down from a 27,000 decrease.

Germany's adjusted unemployment rate fell to 6.5% in January from 6.6% in December, in line with expectations. December's figure was revised down from 6.5%.

Eurozone's adjusted M3 money supply rose 3.6% in December, after a 3.1 gain in November.

Investors remained cautious amid concerns over Greece's future policy. Syriza party won the country's parliament elections on Sunday. The party has pledged to renegotiate the terms of the country's €240 billion euro financial bailout and to reverse many of the austerity measures.

The British pound declined against the U.S. dollar. The Nationwide Building Society released its house price inflation figures for the U.K. on Thursday. The U.K. house price index increased 0.3% in December, missing expectations for a 0.4% gain, after a 0.2% rise in November.

On a yearly basis, the U.K. house price inflation fell to 6.8% in December from 7.2% in November, beating expectations for a decline to 6.6%.

The New Zealand dollar traded mixed against the U.S. dollar. In the overnight trading session, the kiwi fell against the greenback after the Reserve Bank of New Zealand's (RBNZ) interest decision. The RBNZ kept interest rate unchanged at 3.50%.

New Zealand' trade deficit narrowed to NZ$159 million in December from NZ$285 million in November. November's figure was revised down from NZ$213 million Analysts had expected the trade deficit to decline to NZ$27million.

The Australian dollar traded lower against the U.S. dollar. In the overnight trading session, the Aussie decreased against the greenback in the absence of any major economic reports from Australia.

The Japanese yen traded lower against the U.S. dollar. In the overnight trading session, the yen traded lower against the greenback after the weaker-than-expected retail sales from Japan. Retail sales in Japan rose 0.2% in December, missing forecasts of a 0.9% gain, after a 0.5% increase in November. November's figure was revised up from a 0.4% increase.