RTTNews - The euro saw little movement versus the dollar and yen but edged higher versus the sterling on Thursday as equities lacked direction.

Currencies took a breather as traders were unwilling to take positions in higher-yielders like the euro due to concerns that economic green shoots may have been a mirage.

Another round of disappointing US jobs data fueled speculation that stocks may have gotten ahead of themselves with this summer's rally. Risk appetite helped drive the euro to a 2009 high versus the dollar earlier this month, but with exuberance waning, the pair has leveled off.

The euro stayed near 1.4225 versus the dollar Thursday morning.

While recent data has shown some signs of stabilization in the labor market, the Labor Department released a report Thursday morning showing that first-time claims for unemployment benefits unexpectedly increased in the week ended August 15th.

The report showed that initial jobless claims rose to 576,000 from the previous week's revised figure of 561,000.

Against the yen, the euro bounced back and forth around the 134 mark.

Bank of Japan board member Atsushi Mizuno said the global recovery is fragile and cannot be sustained without support from governments and central banks.

The euro rose to 0.8643 versus the sterling, moving the upper end of a two-month range.

UK retail sales in July registered its biggest annual increase since May 2008 reinforcing the perception that recession is slowly leaving the economy. At the same time, government borrowing was the largest on record for July.

Retail sales rose 3.3% in July from a year earlier, which was the biggest increase since May 2008, the Office for National Statistics reported Thursday.

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