MW:Dollar slightly higher ahead of labor-market data
By Saumya Vaishampayan, MarketWatch
NEW YORK (MarketWatch) — The U.S. dollar inched higher against most rivals Thursday ahead of the release of U.S. labor-market data that could foreshadow the monthly jobs report and the future of monetary stimulus.
The private sector is expected to have added 185,000 jobs in August, according to economists polled by MarketWatch. The data, provided by ADP, tends to track the U.S. Labor Department data in the long run but aren’t always the most accurate indicator for the jobs report on a monthly basis. The monthly jobs report, which includes nonfarm payrolls, is due Friday and will be the last release before the Federal Reserve’s September meeting.
Separately, initial weekly jobless claims are expected to inch down to 330,000, near the lowest level in more than five years.
The ICE dollar index DXY +0.06% , a gauge of the greenback’s strength against six rivals, edged higher to 82.206 from 82.143 late Wednesday. The WSJ Dollar Index XX:BUXX -0.01% , which tracks the greenback against a wider basket, rose to 74.42 from 74.34.
The Fed currently buys $85 billion in mortgage and Treasury debt as part of its efforts to revive the U.S. economy. The central bank is widely expected to pare back the rate of its bond buys this year, with many market participants betting on a change at the September meeting.
Several central banks kept monetary policy steady on Thursday. The European Central Bank left its benchmark rate at 0.5% and ECB President Mario Draghi is expected to speak at 8:30 a.m. Eastern. The euro EURUSD +0.07% failed to react to the announcement, fetching $1.3206 in recent trade, near $1.3210 the prior day.
The Bank of England made no change to its bond-buying program and maintained its key lending rate at 0.5%, where it is likely to remain until the jobless rate falls below 7%. The pound GBPUSD +0.24% rose to $1.5642 from $1.5628 late Wednesday.
The Bank of Japan similarly kept its asset purchases unchanged, adding that the economy is “recovering modestly.” The dollar USDJPY +0.05% rose to 99.94 Japanese yen from 99.75 yen the prior day.
