The U.S. dollar retreated against major currencies on Thursday, as investors' risk appetite increase after the better than expected labor data from the United States, which sparked optimism ahead of Friday's infamous jobs report, where the ADP employment report showed private employers in the United States added 157,000 jobs in June more than double expectations, while jobless claims fell below estimates to 418,000 last week.

Moreover, rate decisions in Europe came in line with expectations, where the Bank of England left the benchmark interest rates unchanged at 0.50%, while the European Central Bank raised interest rates by 25 basis points to 1.50 percent, and the ECB signaled rates will remain unchanged in August.

The U.S. Dollar index, which measures the performance of the U.S. dollar against a basket of currencies including the Euro, the Pound, and the Yen, fell on daily basis to trade at 74.86, compared with the opening level at 75.00, while recording a high of 75.41 and a low of 74.85. Gold prices were little changed to trade around the opening level of $1527.66, while crude oil prices rose to trade at $98.91, compared with the opening level at $97.34 a barrel.

The Euro rose slightly against the Dollar, where the EUR-USD pair is trading at $1.4344, compared with the opening level at $1.4334, while recording a high of $1.4374 and a low of $1.4220. The pair is now trading below the resistance at $1.4410 level, and so long it remains below this level, we should expect more downside movement and the target then will be the $1.4215 support level, however, if the pair rises above $1.4410, the next target will be the $1.4495 resistance level.

The British Pound however fell today against the U.S. Dollar, where the GBP-USD pair is now trading at $1.5970, compared with the opening level at $1.6015, while the pair recorded a high of $1.6018 and a low of $1.5944. The pair is now trading below the important level at $1.6045 and so long it continues to trade below this level, the next target is set at the $1.5880 support level, however breaching the $1.6045 level to the upside would send the pair to the $1.6140 resistance level.

The U.S. Dollar rose against the Japanese Yen, where the USD-JPY pair is now trading at ¥81.29, compared with the opening level at ¥80.87, while recording a high of ¥81.41 and a low of ¥80.79. The pair is now trading between the support at ¥80.30 and the resistance at ¥81.50, where breaching the support would send the pair to the downside and target ¥78.40, while breaching the resistance would activate the next target at ¥82.00.