2010.07.2909:41:00UTC+00Euro, Sterling Continue Attack On Dollar

The dollar remained under heavy pressure versus other major currencies Thursday morning, extending its recent losses versus the euro and sterling.

US stocks futures were pointing to a higher open on Wall Street this morning, fueling risk appetite ahead of the latest reading on the jobs market.

On the economic front, traders await the customary weekly jobless claims report for the week ended July 23 from the Labor Department at 8.30 a.m. ET, for cues on the health of the job market.

Economists project that jobless claims remain unchanged at 464,000 after unexpectedly increasing by 37,000 in the previous week.

The dollar slipped to 1.3091 versus the euro -- its lowest since May 17. Early in June the dollar hit a 4-year high of 1.1805 but since tailed off badly on speculation the economic situation is Europe is better than once feared.

The eurozone's economic sentiment indicator rose to 101.3 in July from 99.0 in June, the European Commission said on Thursday. This was higher than analyst forecasts for a score of 99.1.

British house prices dropped in July for the first time since February as tight credit conditions and uncertainty over the future economic situation restricted potential home buyers from entering the market.

Still, the dollar continued to fall versus the sterling, dropping to a fresh 5-month low of 1.5662.

The dollar also fell versus the yen, slipping to a 6-day low of 86.72. A move below 86.25 would take the dollar to its lowest in 2010.

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