2016.09.1509:33:00UTC+00U.S. Dollar Lower After Data Deluge

The U.S. dollar lost ground against its key counterparts in European deals on Thursday, as data showed that retail sales dropped modestly in August, ahead of the Federal Reserve's monetary policy announcement next week.

Data released by the Commerce Department showed that retail sales dipped by 0.3 percent in August following a revised 0.1 percent uptick in July. Retail sales had been expected to remain unchanged.

Excluding a drop in auto sales, the report said retail sales edged down by 0.1 percent in August after falling by 0.4 percent in July. Economists had expected ex-auto sales to rise by 0.3 percent.

A separate report from the Labor Department showed a slight uptick in initial jobless claims in the week ended September 10th.

The report said initial jobless claims inched up to 260,000, an increase of 1,000 from the previous week's unrevised level of 259,000. Economists had expected jobless claims to rise to 265,000.

Meanwhile, another report from the same agency showed that wholesale prices held steady in the month of August.

The Labor Department said its producer price index for final demand was unchanged in August after falling by 0.4 percent in July. Economists had expected prices to inch up by 0.1 percent.

Excluding food and energy prices, core producer prices ticked up by 0.1 percent in August following a 0.3 percent drop in July. The modest increase in core prices matched economist estimates.

The greenback showed mixed trading in the Asian session. While the greenback declined against the yen and the pound, it held steady against the franc and the euro.

Extending early slide, the greenback declined to a 2-day low of 101.93 against the yen. This is down by 0.5 percent from Wednesday's closing value of 102.40. On the downside, the greenback-yen pair may target support around the 100.00 mark.

Reversing from a high of 1.1219 hit at 3:30 am ET, the greenback weakened to a 6-day low of 1.1284 against the euro. The greenback is seen finding support around the 1.14 area.

Data from Eurostat showed that Eurozone inflation remained unchanged in August as estimated earlier.

The harmonized index of consumer prices rose 0.2 percent year-on-year, same as in July. Prices increased for a third straight month

The greenback slid to a 3-day low of 0.9694 against the Swiss franc, coming off from a high of 0.9767 hit at 3:45 am ET. Further weakness may take the greenback to a support around the 0.955 region.

The Swiss National Bank decided to keep its negative deposit rate steady again and reiterated that it would remain active in the foreign exchange market to defend the Swiss franc.

The interest rate on sight deposits at the central bank was kept unchanged at -0.75 percent and the target range for the three-month Libor was held at between -1.25 percent and -0.25 percent.

The greenback that closed yesterday's deals at 0.7281 against NZ dollar weakened to a 2-day low of 0.7317. The next possible support for the greenback may be found around the 0.75 mark.

The greenback, having advanced to a 2-day high of 0.7447 against the aussie at 10:00 pm ET, reversed direction and fell to a 2-day low of 0.7507. If the greenback extends fall, 0.76 is likely seen as its next support level.

The greenback retreated to 1.3157 against the loonie, from an early nearly 2-month high of 1.3236.Continuation of the greenback's downtrend may see it challenging support around the 1.30 mark.

On the flip side, the greenback remained higher against the pound with the pair trading at 1.3202. This may be compared to a 2-day low of 1.3278 set early in the Asian session. The next possible resistance for the greenback may be found around the 1.30 zone.

Bank of England policymakers voted unanimously to keep its key interest rate and asset purchases unchanged, after reducing the former to a record low in August.

The Monetary Policy Committee retained its key bank rate at 0.25 percent, the government bond purchases at GBP 435 billion, and corporate bond purchases at GBP 10 billion in the policy meeting ended September 14. The decision was in line with economists' expectations.