Wednesday, May 23, 2007

Dollar Rebounded vs Euro

The greenback rebounded versus the euro after mixed US housing data and upbeat manufacturing reports eased worries over the nation's economy. The euro dipped to 1.3508 after breaking a key support 1.3560 against the dollar.

US housing starts rose at an annual rate of 1.528 million units in April, above the forecast of 1.49 million and the March reading of 1.518 million. Building permits decreased from 1.564 million units on a yearly basis to 1.429 million. Mixed data indicated the housing sector is cooling down at a moderate pace as expected. US industrial production rose 0.7% in April, reversing a 0.2% decline in the previous month and beating the estimate of 0.3%. US capacity utilization for April came out at 81.6% as expected.

The market will pay attention to US weekly job claims, leading indicators and Philadelphia Fed survey due tomorrow.

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