By William L. Watts, MarketWatch
FRANKFURT (MarketWatch) — The U.S. dollar made gains versus major rivals Friday, while the euro slumped as traders prepared for the release of crucial October nonfarm payrolls data.
The ICE dollar index DXY +0.38% , which measures the U.S. unit against a basket of six major currencies, rose to 80.285 in recent action compared with 80.052 in North American trade late Thursday.
The euro EURUSD -0.5151% fetched $1.2881, down from $1.2941.
“FX markets are unusually restless for a pre-payrolls morning,” said Elsa Lignos, currency strategist at RBC Capital Markets in London.
October payrolls and other employment data are set for release at 8:30 a.m. Eastern time. Economists surveyed by MarketWatch expect the figures to show the economy added 120,000 jobs last month, while the unemployment rate is forecast to have edged up to 7.9% from 7.8%.
In addition to serving as a gauge of the health of the U.S. recovery, the data will be weighed for its impact on the race between President Barack Obama and Republican challenger Mitt Romney, offering the last major piece of economic data before Tuesday’s election. See: U.S. jobless rate is a presidential concern .
The euro’s weakness versus the dollar “appears driven by positioning and squaring up ahead of payrolls, though market participants are now paying more attention to the risks surrounding the Greek parliamentary vote [on additional austerity measures] next week,” Lignos said, in a note.
Greek newspaper Kathimerini reported that Greece’s ruling coalition is struggling to round up votes necessary to back a package of 13.5 billion euros ($17.42 billion) in fresh austerity measures demanded by the country’s lenders.
Euro-zone finance ministers are scheduled to meet on Nov. 12 to discuss whether to release a delayed round of aid to Athens.
“A simple majority of 151 votes is needed to pass bills in the 300 seat parliament, and it is still an open question whether parliamentary ratification will happen on schedule,” said Gareth Berry, strategist at UBS. “Where the euro is trading today does not reflect the considerable risk of another political crisis in Greece within the next two weeks.”
The British pound GBPUSD -0.27% bought $1.6094 versus $1.6127.
The Australian dollar AUDUSD -0.24% changed hands at $1.0400, little changed from $1.0398 late Thursday.
The dollar USDJPY +0.17% traded at 80.30 Japanese yen, up from ¥80.20.
Dollar/yen “continues to lurk below the important intraday high of ¥80.62 last seen on June 25 — strong employment numbers today could see a clean break to the upside, but our U.S. economists think consensus opinion is fair,” Berry said.
William L. Watts is MarketWatch's European bureau chief, based in Frankfurt.
