Investing.com - The dollar slipped lower against the other major currencies on Thursday, as sentiment on the greenback weakened ahead of the release of key U.S. employment data due later in the day.
USD/JPY declined 0.43% to a two-week low of 109.06.
The yen remained supported after Japanese Prime Minister Shinzo Abe said Tuesday he was planning to delay a scheduled sales tax hike amid ongoing weakness in the economy. He also announced plans to implement a fiscal stimulus package later this year.
The announcement raised speculation over a shift away from monetary easing by the Bank of Japan as a way to spur growth.
Investors were eyeing the release of the ADP report on nonfarm employment due later Thursday for further indications on the strength of the job market and possible hints on the timing of future U.S. rate hikes.
Expectations for a near-term rate hike mounted after U.S. central bank chief Janet Yellen said late last week it could be appropriate to raise rates in the coming months if the economy and the labor market continue to pick up as expected.
EUR/USD added 0.13% to 1.1203, ahead of the European Central Bank’s policy meeting later in the day.
The ECB was not expected to make any changes to monetary policy, but some analysts were expecting the bank to raise its forecasts for inflation and growth.
The dollar was lower against the pound and the Swiss franc, with GBP/USD up 0.20% at 1.4442 and with USD/CHF slipping 0.13% to 0.9868.
The pound’s gains were capped however, as the Markit U.K. construction purchasing managers' index fell to 51.2 from April’s reading of 52.0. Economists had expected an unchanged reading.
The report said that delay’s to client decision making ahead of the European Union membership referendum on June 23 had contributed to the slowdown.
The Australian and New Zealand dollars were weaker, with AUD/USD down 0.62% at 0.7213 and with NZD/USD sliding 0.44% to 0.6787.
The Australian Bureau of Statistics reported on Thursday that retail sales rose by 0.2% in April, disappointing expectations for a 0.3% gain, after an increase of 0.4% the previous month.
A separate report showed that Australia’s trade deficit narrowed to A$1.58 billion in April from A$1.97 billion in March. Analysts had expected the trade deficit to widen to A$2.00 billion in April.
Elsewhere, USD/CAD eased up 0.09% to trade at 1.3089.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.16% at 95.27, the lowest since May 27.