The dollar slipped near its lowest level in more than three months ahead of the US jobs report which is expected to show jobs were added at a slower pace last month. The Aussie dipped to session lows after data showed an unexpected trade deficit.
The Bloomberg Dollar Spot Index is on course for its fourth consecutive week of losses as improving global risk appetite at the beginning of the year urged investors to buy stocks and emerging-market assets. Forex traders will be focused on Friday’s jobs report following a bias towards more gradual interest rate hikes emerged from this week’s Fed minutes.
EUR/USD was up almost half a percentage point to 1.20796. Euro stayed close to a three-year peak while the heightened risk appetite is weighing on the Japanese yen. USD/JPY was up above 113.
Aussie fell from its highest level since October 20th. AUD/USD fell to 0.7834 from 0.7870 following the trade data. USD/CAD got lifted by the strong oil prices and is up above 1.2500. Employment data from Canada should give the pair further direction.
