EURJPY Euro vs Japanese Yen

The U.S. dollar slipped against its key counterparts in European trading on Thursday, as traders await U.S. GDP data due today, which is expected to show a slowdown in economic activity for the first quarter.

The Commerce Department is due to release advance estimate of first quarter GDP at 8:30 am ET. Economists expect a slowdown in growth to 0.7 percent.

At the same time, the Labor Department is scheduled to release its jobless claims report for the week ended April 23rd. The consensus estimate calls for an increase in claims to 260,000 from 247,000.

The Federal Reserve kept its benchmark interest rate unchanged on the back of disappointing recent economic data at the end of two-day meeting ending Wednesday.

The Fed offered a somewhat more optimistic view of the global economy and downplayed recent weakness in the U.S. economy, but didn't signal that a rate increase could come as soon as June.

Meanwhile, European stocks fell sharply on Thursday after the Bank of Japan surprised market participants by holding back from further stimulus.

Financial markets rattled as the central bank policy inaction comes despite deterioration in Japan's economic fundamentals.

The dollar has been trading in a negative territory against its major rivals in Asian trading, as the Fed signaled that it would raise rates at a slower pace.

The greenback fell to a 10-day low of 107.92 against the yen, from an early 3-day high of 111.88. The greenback is seen finding support around the 105.00 zone.

Data from the Ministry of Economy, Trade and Industry showed that Japan's retail sales decreased at a slower-than-expected pace in March.

Retail sales fell 1.1 percent year-over-year in March, slower than the 1.4 percent decrease expected by economists. In February, sales had risen 0.4 percent.

The greenback slipped to 1.4619 against the pound and 0.7657 against the aussie, from early highs of 1.4523 and 0.7572, respectively. The next possible support levels for the greenback may be found around 1.47 against the pound and 0.78 against the aussie.

The greenback dropped to 1-week lows of 1.1368 against the euro and 0.9657 versus the franc, reversing from its previous highs of 1.1296 and 0.9733, respectively. Continuation of the greenback's downtrend may take it to support levels of around 1.15 against the euro and 0.95 against the franc.

The greenback slid to an 8-day low of 0.6990 against the NZ dollar and nearly a 10-month low of 1.2528 versus the loonie, off its prior highs of 0.6823 and 1.2606, respectively. If the greenback falls further, it may challenge support around 0.72 against the kiwi and 1.24 against the loonie.

Looking ahead, German preliminary CPI for April is due shortly.

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