Disappointing or even lackluster U.S. indicators tend to dampen expectations that dollar-weakening monetary stimulus programs such as the Fed's monthly USD85 billion bond-buying program will end soon.
Federal Reserve officials have said they will pay careful attention to data before deciding on when to taper stimulus measures and let the economy stand on its own two feet, which should allow borrowing costs to rise and bolster the dollar down the road.
In U.S. trading on Thursday, EUR/USD was up 0.59% at 1.3278.
The Labor Department said earlier that the number of individuals filing for initial jobless benefits last week increased by 7,000 to 343,000 compared with expectations for a gain of 4,000 to 340,000.
The numbers weakened the dollar by keeping expectations alive the Federal Reserve will continue stimulating the economy, especially by keeping its monthly asset-purchase program in place.
Monetary stimulus programs weaken the dollar by keeping borrowing costs low across the economy.
In a separate report, the Commerce Department said orders for durable goods rose by 4.2% in June, outpacing expectations for an increase of 1.3%.
Durable goods for May were revised to a 5.2% gain from a previously reported 3.7% increase.
Core durable goods orders, which exclude volatile transportation items, were flat in June, missing expectations for a 0.5% increase, which kept the greenback lower.
Meanwhile in Europe, data released earlier showed that the Ifo index of German business climate ticked up to 106.2 in July from 105.9 in June, better than expectations for a reading of 106.1, which bolstered the euro.
The greenback, meanwhile, was down against the pound, with GBP/USDtrading up 0.43% at 1.5381.
Data released earlier on Thursday showed that economic growth in the U.K. accelerated to 1.4% on a year-over-year basis in the second quarter, in line with expectations.
The U.K. economy expanded 0.6% quarter on quarter after a 0.3% expansion in the first quarter.
The dollar was down against the yen, with USD/JPY down 0.93% at 99.33, and down against the Swiss franc, with USD/CHF trading down 0.78% at 0.9300.
The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.48% at 1.0263, AUD/USD up 0.85% at 0.9246 and NZD/USD trading up 1.87% at 0.8091.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.64% at 81.84.
On Friday, the U.S. will release a revised Thomson Reuters/University of Michigan gauge on consumer sentiment.
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