Dollar stays flat as U.S. jobs report looms

95
2

LONDON, Aug 4 - The dollar hovered around the levels it held for days as investors awaited U.S. jobs data for an insight into the outlook of interest rates on Wednesday.

Greenback has lost ground against major rivals after the U.S. Federal Reserve in a statement at the end of July said that the job market had some ground to cover before it eases stimulus?

But it's still up around 2% most recently after a Fed meeting in June, when the central bank flagged it was gearing up for sooner-than-expected rate hikes.

On Wednesday, the dollar index edged up 0.1%, last at 92.109.

Investors can get a sense on the job situation later on Wednesday with the release of the ADP employment survey, ahead of Friday's labor market report.

The U.S. labor market report on Friday is likely to be the highlight of this week for the markets, currency analysts at Commerzbank said in a note, adding ADP data would provide a preview, but was unlikely to significantly move the dollar.

The U.S. dollar last had a flat against the euro, after gains on data showing euro zone business activity in July surged, expanding at its fastest pace for 15 years.

In the last round of trading the euro touched $1.18560.

The New Zealand dollar made strong gains for the second consecutive day, after a drop in unemployment in the country raised expectations rate hikes could begin within weeks.

The kiwi was in the last session up 0,9% against the currency note of $0.70740.

The central bank of the country said on Tuesday that it would soon start consulting on ways to control an inflated housing market, as it tries to tighten mortgage lending standards.

The heat we've been hearing and warning about regarding New Zealand's labour market has been borne out, said analysts at Bank of New Zealand.

This surely removes any doubt about the soon removing its foot from the accelerator.

Against the yen, the dollar traded near recent lows, last at 109.140.

Sterling edged up 0.1% ahead of a Wednesday bank of England meeting, at $1.39250.