The U.S. dollar traded higher against the most major currencies despite the weaker-than-expected U.S. economic data. The NAHB housing market index declined to 55 in February from 57 in January. Analysts had expected the index to rise at 58.

The NY Fed Empire State manufacturing index declined to 7.78 in February from 9.95 in January, missing expectations for a fall to 9.1.

The euro traded lower against the U.S. dollar as investors remained cautious due to new debt deal talks between the European Union and Greece.

Germany's ZEW economic sentiment index increased to 53.0 in February from 48.4 in January, but missing expectations for a rise to 56.2. That was the highest reading since February 2014.

The increase was driven by quantitative easing by the European Central Bank and the better-than-expected economic data from the Eurozone.

Eurozone's ZEW economic sentiment index rose to 52.7 in February from 45.5 in January, beating expectations for a gain to 51.3.

The British pound traded lower against the U.S. dollar. The U.K. consumer price index declined to 0.3% in January from 0.5% in December, in line with expectations. That was the lowest level since 1989.

The drop was driven by lower fuel and food prices.

Consumer price inflation excluding food, energy, alcohol and tobacco prices climbed to 1.4% in January from 1.3% the month before.

The Retail Prices Index declined to 1.1% in January from 1.6% in December.

The Swiss franc traded lower against the U.S. dollar ahead the speech by the Swiss National Bank President Jordan.

The Canadian dollar traded lower against the U.S. dollar after the weaker-than-expected foreign securities purchases from Canada. Foreign securities purchases in Canada dropped by C$13.55 billion in December, missing expectations for a gain by C$5.35 billion, after a rise by C$4.30 billion in November. That was the highest divestment since June 2013.

November's figure was revised up from an increase by C$4.29 billion.

The divestment was driven by the weaker outlook for the Canadian dollar due to lower prices.

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

The Australian dollar traded lower against the U.S. dollar. In the overnight trading session, the Aussie increased against the greenback after the Reserve Bank of Australia (RBA) monetary policy meeting's minutes. The RBA cut its interest rate this month to support demand and to achieve balanced growth.

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