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Dollar On Pause Versus Other Majors Wednesday Morning [EUR/USD]
4/23/2008 7:20:42 AM The greenback was range-bound versus other major currencies in quiet dealing Wednesday morning in New York. At 7 am ET, the Mortgage Bankers Association released its mortgage applications report, showing that US mortgage applications fell by 14.2 percent last week. There was little reaction to the news.

The dollar stayed near its record low from the previous session versus the euro Wednesday morning following the release of data showing that euro zone industrial new orders unexpectedly grew in February. The greenback was range-bound between 1.5950 and 1.60 in early dealing, having improved from yesterday`s all-time low of 1.6018.

Euro zone industrial new orders grew 0.6% month-on-month in February, the Eurostat announced Wednesday. Economists had expected a decline of 0.4%. However, the new order growth eased from a revised 2.2% rise registered in January. New orders, excluding ships, railway and aerospace equipment decreased 0.3% from the previous month, reversing 1.2% growth in January.

France`s consumer spending of manufactured goods declined 1.7% month-on-month in March, faster than 0.3% fall expected, the statistical office INSEE said Wednesday. In February, consumer spending was up 1.3%, revised up from 1.2% reported earlier.

The dollar was slightly stronger in choppy dealing versus the sterling, rising to 1.99 from an overnight level near 1.9950. The pair has shown a lack of direction this week, with the buck slipping to a multi-week low before stabilizing.

Wednesday, the minutes of the April rate-setting session of the nine-member Monetary Policy Committee of the Bank of England revealed that six policymakers voted in favor of the proposition to cut the bank rate by 25 basis points to 5%, while three rate-setters voted against. Policymakers Tim Besley and Andrew Sentance preferred to maintain Bank Rate at 5.25%, while David Blanchflower preferred an immediate reduction of 50 basis points to 4.75%.

The dollar was little changed against the yen, bouncing bank and forth around 103. The buck has levelled off since hitting a multi-week high of 104.63 last Friday. The greenback was also unable to sustain any movement versus the loonie, staying near 1.008 through mid-morning.