Dollar Higher against Euro on Speculation U.S. to Avoid Recession (Bloomberg) (04-01-2008)

Jan. 4 (Bloomberg) -- After three days of losses, the dollar gained against the euro, on speculation that the U.S. employment report to be released later today will help suggest that the world's biggest economy will avoid a recession.

U.S. factory orders were reported higher than forecast in November and companies hired workers at a faster-than-expected pace last month, reports showed yesterday. The Labor Department may say employers added 70,000 jobs last month, from 94,000 in November, according to the median forecast of 74 economists surveyed by Bloomberg.

The dollar climbed 0.3 percent to $1.4713 per euro at 9:08 a.m. in London, from $1.4750 yesterday in New York. It traded at 109.27 yen, rising from 109.21 yen earlier and 109.32 yen.

The 1.5 percent increase in factory orders was the biggest in four months and followed a revised 0.7 percent increase in October that was more than previously reported, the Commerce Department said. Excluding transportation, bookings rose 1.4 percent.

Economists forecast orders would rise 0.5 percent, matching the initial estimate for October, according to a Bloomberg survey.

Companies added 40,000 jobs last month, down from the previous month's 173,000 increase, ADP Employer Services said. The ADP report was forecast to show an increase of 33,000, according to the median estimate of 16 economists surveyed by Bloomberg News.

You can read more here