The U.S. dollar climbed against its key counterparts in the European session on Thursday, following a data showing an upward revision to U.S. economic growth in the first quarter, which backed hopes for an additional Fed rate hike move by the end of this year.
Data from the Commerce Department showed that U.S. economic activity grew more than previously estimated in the first quarter.
The report said gross domestic product climbed by 1.4 percent in the first quarter compared to the previously reported 1.2 percent increase. Economists had expected GDP growth to be unrevised.
Meanwhile, data from the Labor Department showed another slight increase in initial jobless claims in the week ended June 24th.
Initial jobless claims inched up to 244,000, an increase of 2,000 from the previous week's revised level of 242,000. Economists had expected jobless claims to edge down to 240,000
Market participants digested U.S. stress test results, which showed that all 34 banks had passed the second part of an annual stress test for the first time in seven years. Fed's approval reflected that the banks' financial foundations were strong enough to withstand a major economic downturn, enabling them to make dividend payouts and buy back shares.
Investors await China's official data on factory and service sector activities on Friday for more indications about economic recovery in the world's second largest economy.
The greenback declined against European major counterparts in the Asian session, after central bankers signaled tighter monetary policy in Europe in the wake of strengthening economies.
The greenback rose back to 1.1388 against the euro, after having fallen to a 1-year low of 1.1435 at 4:00 am ET. The next possible resistance for the greenback is seen around the 1.11 region.
Survey data from the European Commission showed that Eurozone economic confidence strengthened more than expected in June.
The economic sentiment index rose to 111.1 in June, the highest since August 2007, from 109.2 in May. The expected reading was 109.5.
Continuing early rally, the greenback firmed to a 1-1/2-month high of 112.85 against the Japanese yen. On the upside, 114.00 is likely seen as the next resistance for the greenback-yen pair.
Data from the the Ministry of Economy, Trade and Industry showed that Japan's retail sales fell a seasonally adjusted 1.6 percent on month in May.
That missed forecasts for a decline of 1.0 percent following the 1.4 percent increase in April.
The greenback advanced to 0.9598 against the franc, following a decline to near an 8-month low of 0.9561 at 10:00 pm ET. If the greenback-franc pair extends rise, it may possibly target resistance around the 0.97 mark.
The greenback bounced off to 0.7277 against the kiwi and 0.7654 against the aussie, from its early 2-day low of 0.7332 and more than a 3-month low of 0.7681, respectively. The greenback may possibly target resistance around 0.70 against the kiwi and 0.75 against the aussie.
The greenback was trading at 1.3029 against the loonie, reversing from an early near 5-month low of 1.3006. Continuation of the greenback's uptrend may see it challenging resistance around the 1.32 region.
The greenback was trading in a positive territory against the pound with the pair trading at 1.2969. This may be compared to a 5-week low of 1.3007 set at 5:00 am ET. The pair finished Wednesday's trading at 1.2923.
Data from the Bank of England showed that UK mortgage approvals increased slightly in May.
The number of mortgages approved in May totaled 65,202 compared to 65,051 in the previous month. Approvals were forecast to fall to 64,000.
Looking ahead, European Central Bank Executive board member Ignazio Angeloni will give a dinner speech at the Florence School of Banking & Finance Executive Seminar on Financing Banking Resolution in Florence in Italy at 2:30 pm ET.
