Dollar Rises Against Euro

The dollar rises against the euro after reports show rising unemployment in the eurozone but a strong gain in U.S. construction spending.
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By Joe Manimbo of Travelex

USD

: The dollar rose agains the euro this morning on news that unemployment in the eurozone ticked up in April while construction spending was robust in the U.S.

The dollar has been benefiting from the apparent drying up of risk appetite, likely prompted by Israel's weekend raid on aid ships that were headed to the Gaza Strip.

Military action in North Korea last week and now in the Middle East has left investors extremely wary of keeping risky positions and has prompted purchasing of safe-haven currencies like the dollar and yen.

Investors looking for more clarity on the U.S. economic recovery will have plenty to chew over this week.

Today's session kicks things off with April's construction spending and May's Institute for Supply Management manufacturing index. Construction spending logged a 2.7% gain, the biggest since 2000.

However, the main event for this week will no doubt be the May nonfarm payrolls report, which is scheduled for release Friday. This is projected to show that the pace of job losses is slowing. Any positive reading could provide the dollar with yet more support.

In last week's sessions the dollar continued to be supported by safe-haven inflows into the currency. The recent upbeat pace of economic data showed no signs of letting up, prompting speculation that the

Federal Reserve

may soon increase interest rates, lending the greenback further support.

With U.S. markets closed Monday in observance of Memorial Day, trading remained in technical ranges Monday.