Dollar Ticks Lower Ahead of U.S.Jobs Report

By James Ramage 

        The dollar slipped modestly against the euro and the yen on Thursday as few investors made large bets ahead of the U.S. employment report for July, which traders expect will provide clarity on interest rates and set direction for the U.S. currency.
        The dollar declined 0.2% against the common currency, as one euro bought $1.0927. The U.S. currency fell 0.2% versus the yen to Yen124.61.
        The Wall Street Journal Dollar Index, which compares the greenback against a group of 16 commonly traded currencies, ticked down to 89.11 from 89.14 at Wednesday's close, leaving it near the 12-year high it reached on March 13.
        Investors have been betting that the greenback will rise against other developed-market currencies as the Federal Reserve moves closer to raising short-term interest rates for the first time in more than nine years. Many believe robust numbers for U.S. nonfarm payrolls, which will be released Friday morning, will move the central bank closer to announcing tighter credit conditions at its September meeting.
        Higher U.S. interest rates would boost returns on dollar-based assets, making the currency more attractive to investors.
        On Thursday, though, most traders and money managers stuck to smaller trades, said Marc Chandler, global head of currencies at Brown Brothers Harriman & Co.
        "For dollar bulls, it's a day to sit," Mr. Chandler said. "Today might not be the best time to express one's views ahead of the jobs data."
        The Fed monitors labor market data closely and will parse the July jobs numbers for signals that wages and participation are rising and unemployment continues to fall. Economists predict 215,000 jobs were created last month, which is consistent with a strengthening labor market.
        (END) Dow Jones Newswires

        August 06, 2015 12:55 ET (16:55 GMT)

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