Early trade in New York: Euro edges higher

The euro edged higher from a five-week low against the dollar on Thursday after bond yields in some of the heavily indebted eurozone countries eased from extreme levels, but gains were likely short-lived on fears the debt crisis is spreading. US data showing initial jobless claims at a seven-month low last week and a smaller-than-expected fall in housing starts also boosted appetite for risk and lifted the euro.
The euro rose 0.4 percent to $1.3517, having risen as high as $1.3539 on Reuters data. It had earlier fallen to a five-week low of $1.3420. Below there, key downside target lies near the October low of $1.3140. Against the yen, the euro rose 0.3 percent to 104.01, rebounding from a five-week low of 103.37 set Wednesday. The dollar slipped 0.1 percent at 76.96 yen.