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Dollar up vs yen, down vs euro ahead of jobs report

Friday, November 6, 2015 - 07:00
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The dollar gained on the yen but slipped against the euro on Thursday as traders waited for the US jobs report that could support the Federal Reserve increasing interest rates.

[NEW YORK] The dollar gained on the yen but slipped against the euro on Thursday as traders waited for the US jobs report that could support the Federal Reserve increasing interest rates.

The Labour Department's October report was expected to show job growth strengthened to 181,000 new payrolls from September's paltry 142,000 reading.

After the greenback's strong gains on Wednesday, on the back of Fed Chair Janet Yellen's hawkish comments about a December hike, investors were hesitant to take the dollar higher much ahead of the jobs report, said Kathy Lien of BK Asset Management.

The dollar rose to 121.74 yen around 2200 GMT from 121.55 at the same time Wednesday. But the greenback slipped against the euro, going to US$1.0881 per euro from US$1.0865.

"If the US economy adds more than 200,000 jobs, average hourly earnings increase and the unemployment rate holds steady, the dollar will soar to new monthly highs," Ms Lien said.

"However if job growth falls short of expectations or average hourly earnings growth stagnates for another month, then the dollar will give up its recent gains," she said.

The pound dropped sharply after the Bank of England cut its forecast for British economic growth, which implied a rate hike was off the agenda for 2016, dealers said.

AFP