The dollar headed for a weekly loss against the euro on speculation Europe's
central bank will keep its interest-rate advantage as the U.S. economy loses jobs.
The currency fell from a four-week high versus the euro yesterday after European Central
Bank President Jean-Claude Trichet said a rate increase in July is
``possible.'' A government report will probably show the U.S. lost jobs for a fifth
consecutive month. The yen headed for a second weekly decline as stocks
rallied, prompting investors to add to holdings of higher-yielding assets
funded with Japan's
currency.
The dollar has lost 11% against the
euro since the central bank started lowering the fed funds target from 5.25% on
Sept. 18.
EUR/USD tested
$1.5570 before it reached $1.5615.
GBP/USD weakens,
holding around $1.9560/$1.9600.
USD/JPY fell
from Y106.20 to Y105.19.
Today’s focus is on Payrolls data at 12:30 GMT. Analysts predict employment fell 60K in May with unemployment rate rose to 5.1% from 5.0% month earlier.