U.S. Dollar Remains Steady Before Jobs Data

The dollar held gains against most major peers before a U.S. jobs report today and after data yesterday showed the economy expanded more than forecast, fueling bets for an earlier taper in Federal Reserve stimulus.

The U.S. currency headed for a second weekly gain against the euro as a Bloomberg measure of U.S. economic surprises turned positive for the first time in almost a month. The euro was set for a second weekly loss versus the yen after the European Central Bank unexpectedly cut interest rates to a record yesterday.

“The Fed is much closer to the end of its easing cycle than the rest of the major central banks and the surprise cut by the ECB confirmed that broader prognosis,” said Richard Grace, the Sydney-based chief currency strategist at Commonwealth Bank of Australia. “We would stay with a firmer U.S. dollar view.”

Bloomberg

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