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.
EUR/USD traded within $1.5570- $1.5615 range. Bids $1.5570, $1.5550, stronger $1.5520. Offers at $1.5625/30.
GBP/USD posted session low at $1.9536 before recovered to $1.9580. Bids $1.9540/30, $1.9500. Offers $1.9600, $1.9620.
USD/JPY remained within the bounds of Y106.20-Y105.90. Offers Y106.30/50, Y106.60/70.
Today’s focus is on Payrolls data due at 12:30 GMT. U.S. employers probably lost 60,000 jobs in May after a drop of 20,000
in the prior month, according to the median forecast of 79 economists
surveyed by Bloomberg News.
``Disappointing payrolls data have the potential to knock the dollar
lower,'' said Akio Shimizu, chief manager of foreign exchange trading
at Mitsubishi UFJ Trust & Banking Corp. in Tokyo, a unit of Japan's
second-largest bank. ``A combination of doubts about the economy and a
lack of improvement in credit markets are bad for the dollar.''