The U.S. Dollar was slightly stronger vs. the EUR on Thursday, as investors squared positions ahead of the U.S. Non-Farm Payrolls report later today. The USD also traded near a week low against the British Pound before a U.S. government report forecast to showed employers eliminated fewer jobs last month, sapping demand for the greenback as a refuge from the global recession. The USD traded at $1.6323 per pound from $1.6275 yesterday, after falling to $1.6413, the lowest level since Aug. 25.
The greenback briefly extended gains against the Japanese Yen on Thursday, after the Institute for Supply Management said its services index rose to 48.4 in August from 46.4 in July. The U.S. currency finished trading at 92.58 Yen from 92.28 Yen, and is poised for a 4th weekly loss, the longest stretch since December.
Today's Non-Farm payrolls data is expected to have a strong impact on the U.S currency. Any result could be a surprise, and the Dollar could go either way as a result. In any case, traders are unsure how the market will react to today's data. A weak report could feed risk aversion, boost Treasuries and actually aid the U.S Dollar. Then again, a better than expected result might be seen as a sign of relative U.S. economic strength, and lift the Dollar. Or it could also encourage risk-taking and aid commodities and higher-yielding currencies at the Dollar's expense.