Euro fell in European trade off July 5 highs while still on track for weekly gains against dollar, following earlier European trade and ahead of US data later today.

As of 09:28 GMT, EUR/USD fell 0.21% to 1.0300, with a session-low at 1.0288.

Earlier French data showed consumer prices rose 0.3% in July as expected m/m, and 6.1% y/y as expected as well. 

Italian trade deficit rose to 2.166 billion euros from 62 million euros in May, while analysts expected a surplus of 350 million euros.

Euro zone industrial output rose 0.7%, slowing down from 2.1% in May.

The German government asserted it's working on a a deal to put a ceiling on Russian oil prices with other major G7 countries. 

Otherwise, German officials said the government wouldn't concede to Russia on the Nord Stream 2 pipeline that's closed currently, with the government admitting tough months ahead for the country due to lower natural gas supplies.

Italy faces another crisis with Moody's credit agency cutting down Italy's sovereign rating to negative due to ongoing economic struggle and political instability.

The Italian financial ministry dismissed the decision by Moody's and asserted the Italian economy remains on its feet, and that all European economies face pressures.

The ministry announced reform plans for the financial and energy sectors, which will be implemented quickly following the upcoming vote.

From the US, the UoM consumer sentiment survey is expected up to 52.5 in August from 51.5 in July. 

UK GDP fell 0.6% in June, compared to a 0.4% rise in May, beating estimates of a 1.2% drop, while second quarter GDP shrank 0.1%, beating estimates of a 0.2% drop, q/q.

Manufacturing production fell 1.6% in June, compared to estimates of a 1.9% drop, while industrial output fell 0.9%. 

UK goods trade deficit rose to 22.8 billion pounds in June, compared to a 21.4 billion pound deficit in May.

US stock indices climbed on Thursday after a batch of positive data. 

US producer prices fell 0.5% in July, compared to a 1.1% rise in June, while analysts expected a 0.2% rise, while core prices rose 0.4%. 

On a yearly basis, producer prices rose 9.8%, slowing down from 11.3%, while core prices rose 7.6%, also slowing down from 8.2%.

US unemployment claims rose 14 thousand to 262 thousand in the week ending August 6, up from a revised 248 thousand in the previous reading, while analysts expected 264K.

Continuing claims rose 8 thousand to 1.428 million from 1.420 million, missing estimates of a 7K drop to 1.407 million.

Dow Jones rose 0.9% as of 14:19 GMT to 33,612, while NASDAQ climbed 1.2% to 13,014, as S&P 500 rose 1.1% to 4,254. 

US unemployment claims rose 14 thousand to 262 thousand in the week ending August 6, up from a revised 248 thousand in the previous reading, while analysts expected 264K.

Continuing claims rose 8 thousand to 1.428 million from 1.420 million, missing estimates of a 7K drop to 1.407 million.