British construction PMI for November fell to a 7-month low at 55.3, from October's 58.8, driving sterling down half a percent against the dollar to 1.5006, near a 7-month low. Sterling slid to a week's low against the euro at 0.7057 with a 0.10% loss. It gave up 0.16% against the yen to 185.04.

Data from the Eurozone showed flash CPI for November at 0.1%, lower than the 0.2% growth expected. Euro fell about 0.40% against the dollar to 1.0596, as expectations for an aggressive easing by the ECB tomorrow floated back.

Dollar benefited from the weakness of its peers, with its index up 0.30% to 100.17, and near a 12-year high touched in March. Dollar was boosted by data showing non-farming employment change at a positive 217K, much better than the 190K forecast, while nonfarm productivity, which measures labor efficiency, was revised up to show a growth of 2.2% for third quarter, from a preliminary estimate of 1.6%. Dollar touched a two-week high against the yen at 123.35.

European shares were flat, with British stocks profits canceling out continental Europe's losses. Britain's FTSE rose 24 points, or 0.37% to 6,419; boosted by gains from pharmaceutical companies. Eurozone's Stoxx 50 index fell 0.20% to 3,474. Germany's DAX lost 40 points, or 0.39% to 11,217. France's CAC 40 was unchanged at 4,915.

Wall Street opened lower ahead of a speech by Fed's chief Yellen. Dow Jones slipped 24 points, or 0.14% to 17,863. S&P 500 retreated 2.4 points, or 0.12% to 2,100. NASDAQ was flat at 5,156.

Oil prices fell sharply on the strong dollar and supply glut worries; with Brent futures losing 70 cents, or 1.63% to $43.70 a barrel. U.S. crude futures tumbled 68 cents, or 1.55% to $41.20. Gold futures weren't much luckier, stumbling $5.60, or 0.54% to $1.057.80 an ounce.