The U.S. dollar traded mixed against the most major currencies after the trade balance data in the U.S. The U.S. trade deficit declined to $41.5 billion in June from a deficit of $44.7 billion in May, beating expectations for a decrease to $44.2 billion. May's figure was revised down from a deficit of $44.4 billion.

Tensions over Ukraine weighed on markets. Poland's foreign minister warned that Russia is about to increase its presence along its border with Ukraine. Investors preferred safe-haven assets.

The euro traded lower against the U.S. dollar after the weak factory orders in Germany. Factory orders in Germany dropped 3.2% in June, missing forecasts of a 0.5% increase, after a 1.6% decline in May. That was the biggest drop since September 2011.

May's figure was revised up from a 1.7% fall.

The British pound traded lower against the U.S. dollar after the weaker-than-expected industrial production in the UK. Industrial production increased 0.3% in June, missing expectations for a 0.6% rise, after a 0.6% decline in May. May's figure was revised up from a 0.7% decrease.

On a yearly basis, industrial production rose 1.2% in June, missing expectations for an increase of 1.5%, after 2.3% gain in May.

Manufacturing production climbed 0.3% in June, missing forecasts of a 0.7% rise, after a 1.3% fall in May.

On a yearly basis, manufacturing production jumped 1.9% in June, after a 3.7% increase. Economists had expected a rise of 2.1%.

National Institute of Economic and Social Research (NIESR) estimated UK GDP grew by 0.6% in the three months to July, after a 0.9% growth in the previous three months.

The Canadian dollar rose against the U.S. dollar due to the better-than-expected trade data from Canada. Canada's trade surplus jumped to C$1.86 billion in June from C$0.58 billion in May, beating expectations for a deficit of C$0.10 billion. May's figure was revised up from a deficit of C$0.15 billion.

The Swiss franc traded lower against the U.S. dollar. Consumer price index in Switzerland declined 0.4% in July, beating forecasts of a 0.5% fall, after 0.1% decrease in June.

On a yearly basis, Switzerland's consumer price index remained flat in July, in line with expectations.

The New Zealand dollar declined to 2-month lows against the U.S dollar after the labour market data from New Zealand, but later recovered its losses. The number of employed people in New Zealand increased 0.4% in the second quarter, missing expectations for a 0.7% rise, after a 0.9% gain in the first quarter.

New Zealand's unemployment rate dropped to 5.6% in the second quarter from 6.0% in the first quarter, beating expectations for a decrease to 5.8%.

The Australian dollar traded higher against the U.S. dollar in the absence of any major economic reports in Australia.

The Japanese yen traded higher against the U.S. dollar due to increasing demand for safe-haven currency. Japan's leading index climbed to 105.5 in June from 104.8 in May, in line with expectations. May's figure was revised down from 105.7.

The coincident index in June fell to 109.4 in June from 111.2 in May.