TOKYO/LONDON (Reuters) – The dollar hovered around eight-week lows as U.S. non-farm payrolls data could give investors a better idea of when the Federal Reserve will start cutting interest rates.
The euro held gains after the European Central Bank cut rates yesterday in a widely expected move but offered few clues about the outlook for monetary policy as inflation is still above target.
At 11.30am, the dollar index was little moved at 104.086, not far from the recent low of 103.99, when it fell below 104 for the first time since April 9.
For the week, the index is headed for a 0.54% decline after a string of weak macro data has prompted investors to reconsider the possibility of two quarter-point rate cuts from the Fed this week. year.
The ECB also raised its inflation forecast, which is now expected to remain above the 2% target until the end of next year.
The yen gained slightly ground to 155.43 against the dollar and is on track to post a loss of about 1.2% for the week, its worst weekly decline since late April when Japanese authorities intervened in the market to support The uniform.
(Translated by Camilla Borri, editing by Sara Rossi)
