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Dollar on front foot as jobs test looms

The dollar crept higher on Friday in the lead up to the release of U.S. employment data, as traders expect strong numbers that could make the case for faster U.S. policy tightening at a time when action in Europe or Japan seems long distant.

The U.S. dollar index, which measures the greenback against six major currencies rose 0.1% in Friday’s Asia session to 92.374 and is 0.3% higher for the week so far.

Dollar adrift

 

A Reuters poll of strategists found most think the dollar will fall over the next year, but more than 60% of respondents also said they weren’t particularly sure about it.

The euro, which has failed in recent attempts to breach resistance around $1.1910, drifted down to a one-week low of $1.1818 in Asia, just below its 20-day moving average.

The dollar also touched a one-week high of 109.88 Japanese yen, adding to a solid bounce from a low of 108.72 that it hit on Wednesday.

Employment is the area of particular focus because it has remained patchy while other indicators have recovered, something that a few months of sustained hiring could quickly change.

U.S non-farm payrolls data is due at 1230 GMT.

Sterling holds near four-month high vs euro after the Bank of England set out plans for how it would tighten monetary policy.