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Dollar Rallies Versus Euro, Sterling Thursday Ahead Of Durable Goods Data [EUR/USD]
4/24/2008 7:05:56 AM The dollar was generally stronger versus other major currencies Thursday morning in New York, putting its record low versus the euro in the rear-view mirror while hitting a weekly high versus the sterling.

Traders were looking ahead of a slew of economic data from the US. At 8:30 am ET, the Department of Commerce will release its data on durable goods orders, which is a key indicator of the health of the manufacturing sector. Durable goods orders fell 1.1 percent in February following a 4.4 percent drop in January. Economists expect orders to tick up 0.6 percent.

Additionally, the Commerce Department will release its new home sales data and the Labor Department will release its data on weekly jobless claims. The consensus is for weekly claims to rise to 375,000 following last week`s rise of 372,000.

At 10 am ET, market players will be treated to more housing data with the release of new home sales figures for March. Economists forecast new home sales to decline 1.7% following February`s decline of 1.8%.

The dollar rocketed higher versus the euro for a second day Thursday morning, soaring to 1.5720 from an early level near 1.5820. The buck has jumped almost 3 cents since hitting a record low of 1.6023 Tuesday morning. The buck`s advance was fueled by the release of industry data showing that German consumer confidence fell more than expected in April.

The German business climate index fell to 102.4 in April from 104.8 in March, the Munich-based IFO research institute revealed Thursday. The index stood below the expected level of 104.3. The indicator deteriorated for the first time four months.

The French business confidence indicator dropped to 106 in April from March`s revised 108, the statistical office INSEE said Thursday. Economists had expected the index to fall to 108. Earlier, the reading for the month of March was report at 109.

Euro zone`s working day and seasonally adjusted current account showed a surplus of EUR4.3 billion in February, the European Central Bank, or ECB, said Thursday.

The dollar edged higher in choppy dealing versus the sterling, rising to a weekly high of 1.9708 before slipping back to 1.9757. UK retail sales declined slightly more than expected in March from February.

Data released by the Office for National Statistics showed that the retail sales dropped 0.4% month-on-month in March, a slightly bigger fall than the 0.3% decline forecasted. February`s monthly increase was revised up to 1.1% from 1%.

The dollar was little changed versus the yen Thursday morning in New York, rising to 103.90 before moving back to 103.50. Versus its Canadian counterpart, the dollar pared some of yesterday`s significant gains, slipping to 1.0165 from an early level near 1.02. Copyright © 2007 RTTNews.com. All Rights Reserved.