The U.S Dollar trimmed losses against the Yen and rose against the EUR the most in three weeks on Thursday after data showed U.S. jobless claims fell over the last week. The number of U.S. workers filing new claims for unemployment benefits fell more than expected, reviving a demand for the U.S currency.

In early sessions the greenback weakened versus 13 of its 16 most-traded peers after the European Commission President said in Brussels that EU officials reached an accord to deal with Greece's debt crisis. The USD fell against higher-yielding currencies such as the Australian and New Zealand dollars as the European Union reached an agreement to help Greece tackle its budget deficit.

With a number of important data releases expected today, the dollar could experience a fair amount of volatility before the trading week comes to an end. At 13:30 GMT the American economy will publish its retail sales reports, giving investors an idea as to how well the American economy fared last month and whether it is really recovering the way most are expecting. The University of Michigan's Consumer Sentiment report will also be published at 14:55 GMT.