(RTTNews) - The dollar gained on the euro Thursday morning in New York ahead of the latest reading on U.S. jobless claims. Early gains were driven by disappointing economic news out of Germany. Germany's manufacturing sector expanded in August at the weakest pace since September 2009, as the final Markit/BME purchasing managers' index for the manufacturing sector fell to 50.9 in August from 52 in July. The flash estimate showed a reading of 52. The dollar rose to a 10-day high of $1.4262 against the euro, up a penny from yesterday's levels. The buck also gained on the sterling, touching a 3-week high of $1.62. Growth in the British manufacturing sector eased to a 26-month low in August, driven by a fall in production, new orders and employment, latest survey results from Markit Economics showed Thursday. The dollar edged slightly higher versus the yen, improving to Y77 from below Y76.50. The dollar has found support after hitting a record low of 75.93 earlier in August. Yesterday data showed Japanese manufacturing activity slowed in August for the first time in two months. Looking to today's U.S. economic calendar, the Labor Department is due to release its customary jobless claims report for the week ended August 27th at 8:30 AM ET. Economists expect claims to decline to 407,000 after it rose 5,000 to 417,000 in the previous week. At 10 am ET, the Institute for Supply Management is due to release the results of its manufacturing survey. Economists expect the purchasing managers' index based on the survey to dip into contraction territory to 48.5 in August from 50.9 in July. The Commerce Department's construction spending report to be released at 10 am ET is expected to show a 0.1 percent increase in spending for July. The Labor Department will also release its revised second quarter productivity & costs report at 8:30 am ET. Economists expect an upward revision to preliminary figures, with the drop in productivity estimated at 0.5 percent, while unit labor costs is expected to have increased by 2.6 percent.

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