The dollar continued to edge lower after yesterday's weak US housing market data, with the euro rising back above the 1.45 usd mark to reach its strongest level in two weeks. Figures yesterday showed the S&P/Case-Shiller's 10-city composite home price index was down 6.7 pct from from October of 2006, a record decline. The poor data reignited concerns over the outlook for the US economy and have dented the recent prevailing view that the dollar would start the New Year on a high note, said Peter Stoneham at Thomson IFR Markets. The softer dollar has helped underpin the euro, a theme which continued throughout the European morning and into the New York open, he said, though he noted that volumes are very thin. "Thin conditions still helping to exaggerate any move in the market although sources suggest volumes have improved over conditions seen earlier in the week," he said. This afternoon, attention will turn to the release of US durable goods data, weekly jobless claims and the consumer confidence index for December. Any reaction to these figures could be muted, however, due to the thin trading volumes. "These numbers could upset the order but it remains to be seen if there is enough market interest to trigger a move off the back of good or bad data," Stoneham said. Meanwhile, the pound continued to recover against the dollar and remained well off the record lows against the euro that were reached over the Christmas period. The recovery comes amid numerous reports that a higher-than-expected number of shoppers hit the high street for the Boxing Day sales yesterday. The broader outlook for the pound remains one of weakness amid increasing worries about a slowing economy which will prompt further cuts in interest rates from the Bank of England.