By Michael Kitchen, MarketWatch
LOS ANGELES (MarketWatch) — The U.S. dollar ticked lower in early Friday trade ahead of the keenly watched monthly employment data due out later in the day.
The ICE dollar index DXY -0.07% , which compares the greenback with a basket of six other currencies, slipped to 78.994 during the East Asian day, down from 79.010 in late North American trade Thursday.
The euro EURUSD +0.03% , meanwhile, edged up to $1.3146 from its late Thursday level of $1.3138.
GFT Forex global research and analysis director Kathy Lien said the short-term direction for both the dollar and euro would hinge on whether the key U.S. nonfarm payrolls report shows more than 100,000 jobs added in January.
“Unless American companies added fewer than 100,000 jobs last month, the dollar may only see a limited reaction to payrolls,” she wrote in a note Friday.
If the jobs report does print below 100,000, however, “the impact on the Federal Reserve’s plans for [a third round of quantitative easing] may be enough to drive the greenback to fresh monthly lows. If this occurs, the [euro-dollar rate] could see a sustained break above $1.32,” she said.
A MarketWatch survey of economists has projected the January jobs gain to come in at 121,000. See jobs report preview.
Among other major currencies, the Japanese yen USDJPY -0.04% weakened slightly after Finance Minister Jun Azumi said Friday trade in the currency appeared to be “one-sided” and could prompt “decisive steps.” See report on Azumi’s latest intervention warning.
Japan last intervened in the forex market in October, selling yen to push the unit lower, as the strong currency has hurt the nation’s important export sector.
Japanese officials have warned recently of fresh moves to push down the yen but have yet to act.
Friday afternoon in East Asia, the dollar traded at 76.21, up just slightly from ÂĄ76.18 late Thursday.
The British pound GBPUSD +0.10% bought $1.5816, up from $1.5799, while the Australian dollar AUDUSD -0.05% changed hands at $1.0692, easing from $1.0708 Thursday.
Michael Kitchen is Asia editor for MarketWatch and is based in Los Angeles.
