Forex News

Source: Thomson Financial News

Dollar edges lower ahead of US data; yen continues to rise

The dollar edged lower against major currencies as the market awaited US new homeslowest in four years and amid ongoing sales and consumer confidence data later this afternoon, while the yen continued to rise, hitting a 12-day high against the dollar.

After data yesterday showing US existing home sales at their concern about the US subprime market, new home sales figures will be closely watched.

"It will be the housing numbers that are looked to for signals of directional bias for the dollar," said Matthew Foster-Smith at Thomson IFR Markets.

A weak release will prompt dollar selling and could push the euro back towards the 1.35 usd mark, he said.

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