Euro Stabilizes Versus Dollar, Gains On Yen As Stocks Improve

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The euro found its footing against its lower-yielding currencies on Thursday in New York as global stocks improved, adding to risk appetite. Meanwhile, the common currency fell against the pound.

On the economic front, German unemployment unexpectedly fell in July, the first decline since October, thanks to government measures.

On an upbeat note, Eurozone economic sentiment improved for the fourth consecutive month in July pointing towards a possibility of positive growth in the economy during the second half of 2009.

The euro stabilized against the dollar after reaching a 2 1/2-week low on Wednesday. The pair moved at 1.4070 in early afternoon trading, compared to yesterday's low crossing of 1.4006.

In the U.S., initial jobless claims saw a 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 euro touched a two-month low of 0.8502 against the British pound, extending a downward move that began yesterday morning. The pair had been range-bound for about a week before the slide.

House prices in the UK 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 euro climbed to a 3 1/2-week high against the Japanese yen, reaching 95.875. The rise took the European currency above a near-term resistance level.

In economic news, the seasonally adjusted number of unemployed Germans dropped 6,000 in July, data released by the Federal Labor Agency showed Thursday. Economists had forecast the number to rise 43,000. The jobless rate stood at 8.3%, unchanged from June, while it was expected to rise to 8.4%.

The consumer sentiment index stood at 76 in July, up from a revised reading of 73.2 logged in the prior month,a monthly survey published by the European Commission showed. Economists expected the indicator to climb to 75. However, the level is still far below the long-term average.

(Market News Provided by RTTNews)