This article is originally referred from Traders Trust Blog.
The dollar edged down against most major currencies in Asian trade on Friday but remained on track for a weekly gain, as investors awaited U.S. jobs data later in the session to see if the labor market is stronger than previous surveys indicated.
Investors’ risk sentiment also slipped with the safe-haven yen firmer after news that four police officers were fatally shot and seven wounded by snipers who targeted them during rallies in Dallas to protest against the fatal shootings of two black men by police this week.
The consensus forecast is for the U.S. economy to have added 175,000 jobs in June, according to a Reuters poll, but investors remain wary given the negative surprise in the May payrolls report, which some expect to be upwardly revised.
A report overnight showed U.S. private payrolls rose more than expected in June and jobless claims were lower than forecast.
The dollar index, which tracks the greenback against six major rivals, was down 0.2 percent at 96.091 (DXY). But it was still poised for a 0.5 percent gain in a week marked by volatile trade in the wake of Britain’s surprise vote to exit the European Union last month. The perceived safe-haven yen firmed, indicating that investors remained wary ahead of the payrolls report.
The dollar was 0.3 percent lower against the yen at 100.45 yen, though still holding above its post-“BREXIT” low of 99 yen hit on June 24. It was down 2 percent for the week.
Investors also pondered whether the Bank of Japan will decide to take further stimulus action at the conclusion of its two-day policy meeting on July 29, and what form such steps might take.
The euro inched 0.1 percent lower to 111.34 yen (EUR/JPY=R), moving back toward a 3 1/2-year low of 109.30 logged after the “BREXIT” vote. It was poised to shed 2.6 percent for the week. The euro edged up 0.2 percent to $1.1083 , but was down 0.5 percent for the week.
Recently battered sterling was up 0.3 percent at $1.2948 , holding above 31-year lows logged earlier this week though still down about 2.5 percent for the week. But some analysts expect it to drop to as low as $1.20 in coming months as the Bank of England prepares to ease monetary policy to blunt the impact of the “BREXIT” move.
Original Source: Traders Trust Blog