The U.S. dollar traded lower against the most major currencies despite the mainly better-than-expected U.S. economic data. The number of initial jobless claims in the week ending October 11 in the U.S. dropped by 23,000 to 264,000. Analysts had expected the number of initial jobless claims to decline by 1,000 to 286,000.

The U.S. industrial production rose 1.0% in September, exceeding expectations for a 0.4% gain, after a 0.2% decline in August. August's figure was revised down from a 0.1% decrease.

The Philadelphia Fed manufacturing index decreased to 20.7 in October from 22.5 in September, beating forecasts of a decline to 19.9.

The NAHB housing market index fell to 54 in October from 59 in September. Analysts had expected the index to remain unchanged at 59.

The euro traded higher against the U.S. dollar. Earlier, the euro fell against the greenback after the release of Eurozone's inflation data. Eurostat confirmed on Thursday that the consumer price inflation in the Eurozone was at annual rate of 0.3% in September, in line with expectations, down from 0.4% in August. That was the lowest inflation since October 2009.

Eurozone's consumer price index excluding food and energy was at annual rate of 0.8% in September, up from the previous reading of 0.7%. Analysts had expected the consumer price index excluding food and energy to rise 0.7%.

Eurozone's trade surplus climbed to 15.8 billion euros in August from 12.7 billion euros in July. July's figure was revised up from 12.2 billion euros. Analysts had expected the trade surplus to increase to 13.5 billion euros.

The British pound traded increased against the U.S. dollar in the absence of any major economic reports from the U.K.

The Swiss franc traded higher against the U.S. dollar. The State Secretariat for Economics (SECO) lowered its growth forecasts for Switzerland to 1.8% from 2.0% for 2014 and to 2.4% from 2.6% for 2015. The cut was caused by the slowdown in Europe.

The Canadian dollar rose against the U.S. dollar after the mixed Canadian economic data. The Canadian manufacturing shipments declined 3.3% in August, missing expectations for a 1.6% decrease, after a 2.9% gain in July. July's figure was revised up from a 2.5% rise.

Foreign securities purchases in Canada jumped by C$10.28 billion in August, exceeding expectations for an increase by C$4.31 billion, after a C$5.20 billion rise in July. July's figure was revised down from a C$5.30 billion gain.

The New Zealand dollar traded higher against the U.S. dollar. The Business NZ performance of manufacturing index (PMI) rose to 58.1 in September from 57.0 in August. August's figure was revised up from 56.5.

The Australian dollar traded higher against the U.S. dollar. Australia's Consumer Inflation Expectation declined to 3.4% in September from 3.5% in August.

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