Dollar index edges higher ahead of NFP report
The dollar edged higher against other major currencies on Friday, recovering from the previous session’s losses as investors highet the highly-anticipated U.S. employment report due later in the day for further indications on the strength of the job market.
The greenback weakened after payrolls processor ADP reported on Thursday that U.S. private employers added 158,000 jobs in June, well below economists' expectations.
A separate report showed that initial jobless claims unexpectedly rose by 4,000 to 248,000 last week.
The data came after Wednesday’s minutes of the Federal Reserve’s June meeting showed a lack of consensus among policymakers over the outlook for inflation and how it could impact the future pace of interest rate increases.
The Fed hiked rates at its June meeting and stuck to its forecast for one more rate hike this year and three in 2018, but the subdued inflation outlook has since raised doubts over whether the Fed will be able to stick to its planned tightening path.
EUR/USD eased 0.09% to 1.1413.
The single currency had found support after the minutes of the European Central Bank’s June meeting on Thursday showed that officials discussed removing the easing bias from its latest monetary policy statement, before deciding against it.
Elsewhere, GBP/USD edged 0.08% lower to 1.2959, as traders were also looking ahead to a report on U.K. manufacturing production due later in the day.
USD/JPY advanced 0.46% to trade at 113.74, the highest since May 16.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.15% at 95.72