The
dollar traded near a two-month low against the euro before an industry
report that may show U.S. companies cut jobs in June, indicating the
economic slowdown is deepening.
The U.S. currency also weakened on speculation the European Central
Bank will start raising interest rates tomorrow, while the U.S.
government will probably say joblessness increased, prompting traders
to pare bets the Federal Reserve will lift borrowing costs.
``The risk environment isn't conducive for the dollar at the moment,''
said Kamal Sharma, a currency strategist in London at JPMorgan Chase
& Co. ``The ECB is likely to produce a quarter- point rise tomorrow
and the market is looking for more beyond that.''
Traders added to bets on higher euro-area interest rates as ECB
President Jean-Claude Trichet said inflation may ``explode'' if central
banks aren't decisive. The euro stayed stronger after the European
Union said producer prices in the region rose to a record 7.1 percent
in May.
EUR/USD: from $1.5785 gained to $1.5850 before fell to $1.5775. Later in the day the pare rebounded to session high
GBP/USD: traded within $1.9930/70 before fell back to $1.9850, currently trading around $1.9907. Offers now seen
placed between $1.9925/35, stronger between $1.9945/55.
USD/JPY: got support at Y105.80 before reached Y106.70.