US dollar higher vs euro ahead of US jobs report

[NEW YORK] The US dollar gained on the euro but slipped against the yen Thursday as investors waited to see if the coming US June jobs report shows a rebound from May's sharp downturn.

Jobs-related data released Thursday came in stronger than expected, encouraging hopes for a strong employment report Friday.

Initial unemployment claims tumbled last week to a near three-month low, while payroll firm ADP said the private sector added 172,000 jobs in June, slightly up from May.

The US dollar edged up 0.3 per cent against the euro at US$1.1065 per euro. The euro was under pressure from a weak report on Germany showing industrial production contracted more than expected in May.

The greenback fell 0.5 per cent against the Japanese currency to 100.76 yen.

"Most US data of late have been consistent with the economy gaining steam which should help reduce the risk of nonfarm payrolls on Friday missing the mark," said Joe Manimbo, senior market analyst at Western Union Business Solutions.

Analysts expect Friday's labour market report to show the US economy, both public and private sectors, added 175,000 jobs, rebounding from May's paltry 38,000.

The pound fell slightly, stabilising from steep slides following Britain's vote to exit the European Union two weeks ago.

"Better-than-expected UK economic data helped to send the currency higher but as the UK political landscape continued to dissolve, sterling gave up all of its gains," said Kathy Lien of BK Asset Management.

AFP