The U.S. dollar pulled back from its early highs against its major counterparts in the European session on Thursday, as the nation's jobless claims soared last week and housing starts plunged in March due to the outbreak of coronavirus.

Data from the Labor Department showed that 5.245 million Americans filed for unemployment benefits for the week ending April 11.

Economists had expected jobless claims to drop to 5.105 million.

The prior week's figure was revised higher to 6.615 million from the previously reported 6.606 million claims.

Data from the Commerce Department showed that new residential construction in the U.S. showed a substantial decrease in the month of March.

The report said housing starts plunged by 22.3 percent to an annual rate of 1.216 million in March from a revised rate of 1.564 million in February.

Economists had expected housing starts to drop to a rate of 1.300 million from the 1.599 million originally reported for the previous month.

The greenback eased to 107.42 against the yen, from a 3-day high of 108.08 seen at 12:30 am ET. The currency is seen finding support around the 105.00 level.

The greenback retreated to 0.9647 against the franc, after rising to 0.9689 at 6:00 am ET. The currency is poised to challenge support around the 0.94 mark.

The greenback moved off to 1.0901 against the euro, from a 1-week high of 1.0853 set at 6:00 am ET. The next possible support for the currency is seen around the 1.10 level.

Data from Eurostat showed that Eurozone industrial production dropped marginally in February, ahead of COVID-19 containment measures began to be widely introduced among member countries.

Industrial production fell by less-than-expected 0.1 percent month-on-month in February, reversing a 2.3 percent rise in January. Output was forecast to drop 0.2 percent.

The greenback pared gains to 1.2514 against the pound, from a high of 1.2457 logged at 5:30 am ET. Next immediate support for the currency is likely seen around the 1.27 level.

The latest credit conditions survey from the Bank of England showed that British lenders expect demand and availability of corporate loans to rise in the second quarter.

In the first quarter, demand from small businesses for corporate lending decreased, whereas demand from medium businesses increased slightly. At the same time, demand from large businesses was unchanged in the first quarter.

The greenback eased to 0.5998 against the kiwi, 0.6333 against the aussie and 1.4064 against the loonie, from its early 8-day high of 0.5942, 1-week high of 0.6264 and a 9-day high of 1.4137, respectively. If the greenback falls further, it may find support around 0.64 against the kiwi, 0.70 against the aussie and 1.30 against the loonie.

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