Dollar Rally Fizzles As Stocks Look To Rebound Thursday

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The dollar leveled off versus other majors Thursday morning after a strong performance in the previous session as US stocks appeared poised to snap back, fueling renewed risk appetite.

While weakening versus sterling, the dollar was able to hold onto most of its big gains versus the euro and sat practically still against the yen.

Traders will be eying the customary weekly jobless claims report for the week ended July 25th, which is due at 8:30 AM ET.

First-time claims for unemployment benefits showed a moderate increase in the week ended July 18th, with the increase coming roughly in line with economist estimates. The report showed that jobless claims rose to 554,000 from the previous week's revised figure of 524,000.

The dollar eased to 1.4066 versus the euro, moving slightly from yesterday's 2-week high of 1.4006. Earlier in the week, the dollar came within a whisker of setting a new 2009 low, slipping near June's low mark of 1.4338.

Eurozone economic sentiment improved for the fourth consecutive month in July, a monthly survey from the European Commission showed Thursday. The index stood at 76, up from a revised reading of 73.2 recorded in the prior month. Economists were expecting the indicator to climb to 75.

Versus the sterling the dollar continued its run of choppy trading, slipping to 1.6500 from a weekly high of 1.6337. On a longer term basis, the dollar is little changed over the past two months.

House prices in the U.K. rose for the third straight month in July, with the pace exceeding economists' expectations, suggesting that prices would be much better by the end of this year compared with the beginning.

House prices rose 1.3% month-on-month in July after climbing a revised 1% in June, data released by the Nationwide building society showed Thursday.

The buck held its ground versus the yen, moving near 95 in quiet dealing. The pair seems to have found a solid range since the dollar improved from a 5-month low of 91.87 set earlier this month.

The dollar was slightly weaker versus the loonie Thursday morning, easing a cent to C$1.0840. In the process, the dollar moved back toward a 10-month low of C$1.0749, set earlier this week.

Canadian industrial product price data is due at 8:30 a.m. ET. Analysts predict prices fell 1.1% in the month of June, compared to a 0.1% jump in May. At the same time, raw materials price index rose 3% in June, compared to 2.2% in May.

(Market News Provided by RTTNews)