Investing.com - The dollar slipped lower against the other major currencies on Friday, as investors remained cautious ahead of the release of key U.S. employment data later in the day, although overall optimism over the strength of the economy still lent support.
EUR/USD edged up 0.18% to 1.0677, the highest level since Noveber 28.
The dollar had strengthened broadly on Wednesday after the Organization of the Petroleum Exporting Countries reached an agreement on an oil output cut aimed at tackling global oversupply and shoring up prices.
Expectations for higher oil prices added to U.S. inflation expectations, which have already been boosted by prospects for increased fiscal spending under the Trump administration.
The dollar also found support after the Institute for Supply Management said on Thursday that its manufacturing activity index rose to 53.2 last month from October’s reading of 51.9. Analysts had forecast a smaller increase to 52.2.
On a less positive note, the U.S. Department of Labor said initial jobless claims increased by 17,000 to 268,000 last week, confounding expectations for a 2,000 rise to 253,000.
GBP/USD gained 0.36% to trade at 1.2637, just off Thursday’s two-month high of 1.2697.
The pound remained supported after British Brexit Minister David Davis indicated on Thursday that London would consider paying for access to European markets after Brexit.
Elsewhere, USD/JPY held steady at 114.06, after hitting a 10-month peak of 114.83 on Thursday.
The Australian dollar was steady, with AUD/USD at 0.7417, after the Australian Bureau of Statistics earlier reported that retail sales increased by 0.5% in October, beating expectations for an uptick of 0.3%.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.15% at 100.87, the lowest since November 28 but still close to recent 14-year highs of 102.12.