Dollar ‘Becalmed’ as Traders Await Monthly U.S. Labor Reportby
Employers added 180,000 jobs in July, Bloomberg survey shows
Data last week showed U.S. economy grew less than forecast
A gauge of the dollar halted a two-day gain before the U.S. Labor Department releases its latest monthly jobs report, a key indicator of how the economy is performing.
The U.S. currency fell versus most of its 16 major peers as traders waited for the employment data which, according to the median estimate of analysts in a Bloomberg survey, will show that U.S. employers added 180,000 jobs in July. That compares with an increase of 287,000 in June. Last week, Bloomberg’s Dollar Spot Index dropped by the most since April after a report showed the world’s biggest economy grew less than analysts forecast in the second quarter.
“There is a degree of residual uncertainty into the release,” said Jeremy Stretch, head of foreign-exchange strategy at Canadian Imperial Bank of Commerce in London. “After the correction in rate expectations last Friday, post-GDP markets are looking to see whether we see that negativity reversed. For now though we can expect relatively becalmed markets until the release.”
The Bloomberg Dollar Spot Index, which tracks the currency against 10 major counterparts, fell 0.1 percent as of 7 a.m. New York time, having climbed 0.4 percent in the previous two days. The index dropped 1.7 percent last week, its steepest decline since April 29. The U.S. currency weakened 0.2 percent to $1.1147 per euro, and depreciated 0.2 percent to 101.06 yen.