“The dollar snapped its biggest advance against the euro in two weeks before the U.S. releases April jobs data after the previous report disappointed with employers adding the fewest positions in nine months.
The euro yesterday dropped versus 15 of its 16 major peers after European Central Bank President Mario Draghi said policy makers may take the unprecedented step of charging banks to hold excess reserves. Australia’s dollar was set for its longest weekly losing streak versus the New Zealand currency in 12 years as traders raised bets the bigger nation’s Reserve Bankwill cut borrowing costs next week.
“The data has softened recently and that could show up in non-farm payrolls,” said Richard Grace, the Sydney-based chief currency strategist and head of international economics atCommonwealth Bank of Australia. “If the number is weak, theU.S. dollar will go down a little as will long bond yields.”
The dollar traded little changed at $1.3067 per euro as of 7:11 a.m. in London after rising 0.9 percent yesterday, paring this week’s decline to 0.3 percent.
The U.S. currency fetched 98.10 yen from 97.94 yesterday and 98.05 on April 26. The 17-nation euro was at 128.16 yen from 127.95, heading for a 0.3 percent climb on the week.
Japanese markets are closed today and on May 6 for holidays.
Payrolls increased by 140,000 workers after an 88,000 gain in March, according to the median forecast of economists surveyed by Bloomberg News before a Labor Department report. Theunemployment rate may have stayed at 7.6 percent, matching March’s reading as the lowest since December 2008.
