Talk that the Federal Reserve will keep the door open to monetary easing also sent the greenback falling.
In Asian trading on Thursday, EUR/USD was trading up 0.24% at 1.2746.
In Japan, the government reported the country's gross domestic product grew 1% in the first quarter from the fourth quarter, beating out market calls for 0.9% growth.
The country's GDP shrank 0.2% in the fourth quarter.
Meanwhile in the U.S., the Federal Reserve released the minutes of its latest monetary policy meeting earlier, revealing some policymakers favor rolling out monetary easing measures to jolt the economy should recovery wane.
"Several members indicated that additional monetary policy accommodation could be necessary if the economic recovery lost momentum or the downside risks to the forecast became great enough," the Federal Reserve minutes read.
Easing measures tend to weaken the greenback by flooding the economy with liquidity to push long-term interest rates low and encourage expansion and hiring.
In Europe, Greece appears headed for a new round of elections on June 17 after political parties failed to piece together a coalition government in wake of May 6 elections.
While electoral fears have pushed the euro down in recent trading sessions, the currency did see support on comments from German Chancellor Angela Merkel, who said she wants to see Greece stay in the currency bloc.
European Central Bank President Mario Draghi echoed similar sentiments.
In the U.K., the Bank of England reported inflation will likely to remain above its 2% target for at another year and cut its growth forecasts as well.
U.K. data showed that the number of people claiming unemployment benefits fell by 13,700, while the unemployment rate ticked down to 8.2%.
The greenback was down against the pound, with GBP/USD up 0.10% and trading at 1.5926.
The U.S. currency was down against the yen, with USD/JPY trading down 0.03% at 80.31, and down against the Swiss franc, with USD/CHF trading down 0.24% at 0.9423.
The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.09% at 1.0111, AUD/USD up 0.34% at 0.9946 and NZD/USD up 0.44% at 0.7676.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.27% at 81.42.
Later Thursday, the U.S. will reveal government data on weekly initial jobless claims, followed by a report on manufacturing activity in the Philadelphia area.
EUR/USD recommended level today may 17 2012
Today's support: 1.2693(main), where correction is possible. Break would give 1.2676, where correction also may be. Then follows 1.2653. Break of the latter would result in 1.2628. If a strong impulse, we would see 1.2605. Continuation will give 1.2582.
Today's resistance: - 1.1772, 1.2825, 1.2881 and 1.2915(main). Break would give 1.2938, where a correction is possible. Then goes 1.2957. Break of the latter would result in 1.2983. If a strong impulse, we'd see 1.3011. Continuation will give 1.3056.
USD/JPY recommended level today may 17 2012
Today's support: - 79.94, 79.76 and 79.38(main). Break would bring 79.21, where correction is possible. Then 79.10, where a correction may also happen. Break of the latter will give 78.98. If a strong impulse, we would see 78.69. Continuation would give 78.98 and 78.30
Today's resistance: 80.58(main), where a correction may happen. Break would bring 80.79, where also a correction may be. Then 81.00 If a strong impulse, we would see 81.33. Continuation will give 81.51.
GBP/USD recommended level today may 17 2012
GBP/USD spent the Asia-Pacific session in consolidation mode after closing North America down 0.5% to 1.5907, bracketed between 1.5906 and 1.5930, last at 1.5915.
Yesterday, the BoE Inflation Report surprisingly lowered both GDP and inflation forecasts, rekindling expectations of further asset purchases.
“With this fundamental shift and after giving up important support at 1.60, the 1.5830/40 support zone (April lows and the 200-DMA) is now in view in the coming days,” says TD Securities.
In the European session ahead, there is no UK specific data on the economic calendar, so price action will be driven primarily by market sentiment.
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