By Sarah Turner, MarketWatch
SYDNEY (MarketWatch) — The dollar index wavered between small gains and losses on Friday, ahead of a key report on U.S. jobs due out later in the global trading day.
The dollar index DXY +0.01% , which measures the greenback against a basket of six currencies, traded at 74.355, up from 74.344 in late North American trading on Thursday.
The dollar index lost ground on Thursday when “comments from Moody’s that they could put the U.S. on possible review unless there are visible inroads for a solution on the debt ceiling were enough to see U.S. dollar bears return,” said traders at IG Markets. Read story on Moody's warning.
“Heading into the weekend break, it’s very much a case of all eyes on the U.S. non-farm payrolls that are slated for release later in the session,” they said.
This week saw the release of some very weak U.S. data on jobs and manufacturing, which left economists revising down expectations for payroll additions in May.
Economists surveyed by MarketWatch now expect that 125,000 jobs were added to the U.S. economy in May, down from 244,000 in April. Read preview on U.S. nonfarm payrolls.
“Many traders [are] on edge that, even with the generous quantitative easing packages that are now coming to a close, the world’s largest economy has still failed to establish itself on a recovery track — something a shortfall in employment would simply serve to underline,” said the IG Markets traders.
The euro EURUSD -0.1173% traded at $1.4483, almost flat from $1.4484 in late North American trading on Thursday, when the euro at one point touched its highest level since early May after reports of a tentative deal for the euro-zone to extend loans to Greece. Read more on Thursday's euro move.
The dollar USDYEN -0.33% bought 80.68 yen on Friday, from ¥80.87 in late North American trading on Thursday.
