FOREX-Dollar gains over euro after strong U.S. retail sales

* Retail sales, jobless claims show strong U.S. economy

* Euro hurt by weak manufacturing data

(New throughout, updates trading and comments to U.S. market

open, new byline, changes dateline, previous LONDON)

By Karen Brettell

NEW YORK, April 18 (Reuters) - The U.S. dollar gained on

Thursday on strong retail sales data, while the euro was dented

by weak manufacturing data in the region.

U.S. retail sales increased by the most in 1-1/2 years in

March as households boosted purchases of motor vehicles and a

range of other goods, the latest indication that economic growth

picked up in the first quarter after a false start.

Other data showed that the number of Americans filing

applications for unemployment benefits fell to more than a

49-1/2-year low last week, pointing to sustained strength in the

economy.

The picture was less bullish in the Eurozone as data showed

that activity in Germany's manufacturing sector shrank for a

fourth straight month in April, while a similar survey from

France also painted a bleak picture.

“In the space of several hours we got a timely reminder that

the growth leadership is very decisively in favor of the U.S.

dollar,” said Richard Franulovich, head of FX strategy at

Westpac Banking Corp in New York.

Investors have been looking for signs that global growth is

stabilizing after a slowdown.

"Investors are worried about the health of the global

economy and the eurozone and the fortunes of the euro are

closely tied with that," said Ricardo Evangelista, a senior

analyst at ActivTrades in London.

A week ago, European Central Bank President Mario Draghi

raised the prospect of more support for the struggling euro zone

economy if its slowdown persist.

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Currency bid prices at 9:00AM (1300 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change

Session

Euro/Dollar EUR= $1.1238 $1.1294 -0.50% -2.01% +1.1305 +1.1239

Dollar/Yen JPY= 111.9500 112.0500 -0.09% +1.53% +112.0700 +111.7800

Euro/Yen EURJPY= 125.81 126.54 -0.58% -0.32% +126.6000 +125.7100

Dollar/Swiss CHF= 1.0130 1.0103 +0.27% +3.22% +1.0132 +1.0093

Sterling/Dollar GBP= 1.3002 1.3043 -0.31% +1.92% +1.3053 +1.2994

Dollar/Canadian CAD= 1.3379 1.3338 +0.31% -1.89% +1.3399 +1.3336

Australian/Doll AUD= 0.7154 0.7178 -0.33% +1.49% +0.7199 +0.7149

ar

Euro/Swiss EURCHF= 1.1386 1.1414 -0.25% +1.17% +1.1422 +1.1367

Euro/Sterling EURGBP= 0.8642 0.8657 -0.17% -3.81% +0.8669 +0.8637

NZ NZD= 0.6681 0.6726 -0.67% -0.54% +0.6730 +0.6680

Dollar/Dollar

Dollar/Norway NOK= 8.5254 8.4911 +0.40% -1.31% +8.5597 +8.4867

Euro/Norway EURNOK= 9.5838 9.5976 -0.14% -3.25% +9.6314 +9.5851

Dollar/Sweden SEK= 9.3174 9.2466 +0.25% +3.94% +9.3350 +9.2391

Euro/Sweden EURSEK= 10.4732 10.4475 +0.25% +2.04% +10.5034 +10.4400

(Additional reporting by Saikat Chatterjee in London

Editing by Susan Thomas)