Investing.com - The euro slid against and advancing dollar on Thursday after a report on weekly jobless claims beat expectations a day after the Federal Reserve suggested that rate hikes are on the way.
In U.S. trading, EUR/USD was down 0.49% at 1.2283, up from a session low of 1.2266 and off a high of 1.2352.
The pair was likely to find support at 1.2245, the low from Dec. 8, and resistance at 1.2571, Tuesday's high.
The U.S. Department of Labor reported earlier that the number of individuals filing for initial jobless benefits in the week ending Dec. 12 fell by 6,000 to 289,000 from the previous week’s revised total of 295,000. Economist had forecast an increase of 1,000, and the better-than-expected result firmed the dollar.
At the conclusion of its monthly policy meeting on Wednesday, the Fed said it would be "patient" before raising rates, guidance which it said is consistent with earlier assurances statement that rates would stay low "for a considerable time."
The U.S. central bank noted improvements taking place in the U.S. labor market and stressed that the economy is making progress toward its goals in inflation and employment.
At the bank’s post policy meeting press conference Fed Chair Janet Yellen said the Fed was unlikely to raise rates for the "next couple of meetings" indicating that a move in April at the earliest is possible.
Elsewhere, manufacturing activity in the Philadelphia-region slowed in December after expanding at the fastest rate since December 1993 last month, according to data released on Thursday.
The Federal Reserve Bank of Philadelphia said its manufacturing index came in 24.5 at this month, down from 40.8 in November.
Economists had forecast a decline to 26.6.
On the index, a reading above 0.0 indicates improving conditions, below indicates worsening conditions.
The current new orders index, which reflects the demand for manufactured goods, fell to 15.7 from 35.7, while the employment index dropped to 7.2 from a three-and-a-half year high of 22.4 last month.
Meanwhile in Europe, the Ifo Institute said its business climate index for Germany rose to 105.5 this month from a reading of 104.7 in November. Analysts had expected the index to tick up to 105.4 in December, though U.S. monetary policy served as the region's chief steering current.
Elsewhere, the euro was down against the pound, with EUR/GBP down 0.97% at 0.7846, and down against the yen, with EUR/JPY down 0.14% at 146.22.
The pound saw support after the Office for National Statistics reported earlier that U.K. retail sales rose 1.6% last month, beating forecasts for a 0.3% gain. October’s figure was revised up to an increase of 1.0% from a previously estimated 0.8% gain.
On a year-on-year basis, retail sales jumped 6.4% beating expectations for a 4.2% gain, after rising at an upwardly revised annual rate of 4.6% in October.
Core retail sales, which exclude automobile sales, were up 1.7% and rose 6.9% from a year earlier. Economists had forecast a monthly increase of 0.4% and an annual gain of 4.5%.
On Friday, Germany is to release a report by Gfk on consumer climate.