|
 The dollar index was down 0.1 percent at 93.652, having gained
around 2 percent from a trough of 91.919 hit earlier this week --
its lowest point since January 2015.
It was 0.2 percent lower against the yen at 107.05 yen, having risen
for three straight days to pull away from an 18-month low of 105.55
struck on Tuesday. It was on course for a weekly gain of 0.5 percent
versus the yen.
The euro, which rose to an eight-month peak of $1.1616 on Tuesday,
was steady at $1.1415.
A Reuters survey showed economists expect U.S. payrolls to have
risen by 202,000 in April after increasing by 215,000 in March. A
weaker-than-expected ADP report this week has tempered market
expectations of a robust reading on Friday.
"It will need a significant upside surprise from the jobs report for
the dollar to change trend," said Yujiro Goto, currency strategist
at Nomura. "We expect gains in dollar/yen to be capped around 108
and similarly downside for the euro will be limited."
Traders will also keep an eye on signs of pick up in wages for clues
on inflationary pressures in the economy.
"On payrolls, we are forecasting 188,000 jobs being added, with the
jobless rate at 5 percent and wages rising 0.4 percent, month on
month," said Ned Rumpeltin, European head of FX strategy at TD
Securities.
"If the numbers surprise marginally, then we think the impact on the
dollar for today will be constrained as expectations of when the Fed
will move are unlikely to be altered."
[to top of second column] |
Some large funds have been cutting favorable bets on the dollar amid
uncertainty over when the Federal Reserve will raise rates.
Investors only see a 13 percent chance that the Fed will hike in
June, according to CME's FedWatch.
On Friday, Morgan Stanley upgraded its euro/dollar forecasts and
downgraded its outlook for dollar/yen, saying the European Central
Bank and the Bank of Japan -- both battling to ward off deflationary
pressures -- are running out of options to curb the strength of
their currencies.
It expects dollar/yen at 103 yen in the end of the second-quarter,
compared with its previous forecast of 110, while the euro is
expected to rise to $1.16, up from an earlier forecast of $1.06.
The Australian dollar shed 1.4 percent to a two-month low of $0.7359
after the Reserve Bank of Australia (RBA) slashed its inflation
forecasts, suggesting the door was open for another interest rate
cut.
(Reporting by Anirban Nag; editing by John Stonestreet)
[© 2016 Thomson Reuters. All rights
reserved.] Copyright 2016 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
