The U.S. dollar fell against its most major counterparts in the European session on Thursday, as market participants digested conflicting headlines on trade talks between the U.S. and China.

The United States and China made no progress in deputy-level trade talks held on Monday and Tuesday in Washington, the South China Morning Post (SCMP) said, citing sources.

The White House has denied reports suggesting that Chinese Vice Premier Liu He is planning to leave Washington on Thursday after just one day of minister-level meetings.

All eyes are focused on Washington, where high-level trade talks between China and the United States begin today.

Meanwhile, U.S. Democratic presidential contender Joe Biden called for the impeachment of Trump for the first time in a deepening partisan fight over a congressional investigation of the Republican president.

On the economic front, U.S. weekly jobless claims figures and consumer price index for September will be released at 8:30 am ET.

The currency has been trading in a negative territory against its major counterparts in the Asian session, excepting the yen.

The greenback weakened to a 2-day low of 0.9915 against the franc from Wednesday's closing value of 0.9959. The currency is likely to face support around the 0.96 level.

The greenback slipped to 1.1020 against the euro, its lowest since September 25. Next near term support for the greenback is likely seen around the 1.12 level.

Data from Destatis showed that Germany's exports declined the most in four months, while imports recovered at a faster than expected pace.

Exports fell by more-than-expected 1.8 percent month-on-month in August, reversing a 0.8 percent rise in July. Exports were forecast to fall 1 percent.

The greenback edged down to 1.2249 against the pound, from a high of 1.2200 hit at 5:00 pm ET. On the downside, 1.24 is likely seen as the next support level for the greenback.

Data from the Office for National Statistics showed that the UK economy expanded in three months to August for the second consecutive time suggesting that it is on the course to avoid a recession ahead of Brexit.

Rolling three-month gross domestic product growth increased to 0.3 percent from 0.1 percent in three months to July. This was also faster than the expected 0.1 percent rise.

Reversing from a weekly high of 0.6277 seen at 6:45 pm ET, the greenback dropped to a 2-day low of 0.6327 against the NZ currency. The currency may challenge support around the 0.645 mark, if it weakens further.

The greenback pulled back from an early weekly high of 1.3346 against the loonie, dropping to 1.3306. The greenback is seen finding support around the 1.30 level.

Extending early slide, the greenback touched a 3-day low of 0.6762 against the aussie. This follows a 1-week high of 0.6710 seen at 7:00 pm ET. The next likely support for the greenback lies around the 0.71 level.

On the other side, the greenback held steady against the yen, after having risen to an 8-day of 107.77 at 9:30 pm ET. At yesterday's close, the pair was worth 107.48.

Data from the Bank of Japan showed that Japan producer prices were flat on month in September - matching forecasts following the 0.3 percent decline in August.

On a yearly basis, producer prices were down 1.1 percent - again in line with expectations after sliding 0.9 percent in the previous month.

Looking ahead, at 7:30 am ET, the European Central Bank publishes the account of the monetary policy meeting of the Governing Council held on September 11-12.

In the New York session, Canada new housing price index for August, U.S. consumer price index for September and weekly jobless claims for the week ended October 5 will be out.

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