The Dollar Holds Meager Gains On Expectations of Stronger Job Growth

“The Dollar Index held onto yesterday’s gains on speculation U.S. reports will show employers added jobs for a 15th month and growth in service industries quickened, underpinning the appeal of American assets.

The yen weakened versus all of its 16 major counterparts as signs that the U.S. recovery remains on track sapped demand for Japan’s currency as a refuge. The pound traded 0.2 percent from a one-week low versus the dollar before a U.K. report that may show a construction index fell for a third month, supporting the case for the Bank of England to keep interest rates low.

“The U.S. data that is coming out is starting to paint a bit better picture,” said Matthew Brady, executive director for foreign exchange at JPMorgan Chase & Co. in Sydney. “I’m starting to get a little bit bullish for the dollar at the moment.””

Full article