The euro slid against the dollar on Thursday after the Labor Department reported that fewer individuals sought first-time joblessness assistance in the U.S. last week, which kept market consensus strong that tighter monetary policy is just months away.
In U.S. trading, EUR/USD was down 0.22% at 1.3353, up from a session low of 1.3337 and off a high of 1.3394.
The pair was likely to find support at 1.3333, Wednesday's low, and resistance at 1.3445, last Friday's high.
The U.S. Department of Labor reported earlier that the number of individuals filing for initial jobless benefits in the week ending Aug. 2 fell by 14,000 to 289,000 from the previous week’s total of 303,000.
Analysts had expected jobless claims to rise by 2,000 to 305,000 last week, and the numbers confirmed market expectations for the Federal Reserve to close its monthly bond-buying stimulus program in October and begin hiking interest rates afterwards in 2015.
Demand for the greenback has been on the rise in recent sessions due to upbeat U.S. trade balance, service-sector, economic growth and other data.
Meanwhile in Europe, the European Central Bank kept its main refinancing rate at 0.15% earlier Thursday in a widely anticipated decision.
ECB President Mario Draghi attributed softening inflation rates to energy concerns and added the monetary authority still expects "moderate" and "uneven" economic recovery in the euro area economy.
Interest rates will remain at present levels "for an extended period of time," while the bank remains committed to using unconventional measures if the outlook deteriorates, Draghi said, adding that inflation is expected to remain soft in the coming months before gradually rising in 2015 and 2016.
Risks to recovery remain to the downside Draghi said, though heightened geopolitical risk could affect the economy.
Monetary authorities are still assessing possible impacts that sanctions slapped on Russia for its alleged meddling in Ukraine may on the euro area economy.
Elsewhere, the euro was down against the pound, with EUR/GBP down 0.14% at 0.7930, and down against the yen, with EUR/JPY down 0.16% at 136.43.
On Friday in the euro zone, France is to publish data on industrial production, while Germany is to publish a report on its trade balance.