Investing.com - The dollar slipped lower against a basket of other major currencies on Friday, as sentiment on the greenback became fragile ahead of the release of highly anticipated U.S. nonfarm payrolls due later in the day.
The dollar strengthened on Thursday after data showed that the number of people who filed for unemployment assistance in the U.S. last week fell more than expected, fueling optimism over the strength of the labor market.
The U.S. Department of Labor reported that the number of individuals filing for initial jobless benefits in the week ending November 1 decreased by 10,000 to 278,000 from the previous week's revised total of 288,000.
The euro edged higher but remained close to a two-year low, with EUR/USD adding 0.15% to 1.2391.
The euro remained under pressure after European Central Bank President Mario Draghi said on Thursday that the ECB would soon begin purchasing asset-backed securities to prop up the economy.
The program will run for two years and have a "sizeable impact" on the ECB’s balance sheet, Draghi said.
He added that the governing council is unanimously committed to taking further "timely measures" if needed, which sent the euro dropping.
Earlier Friday, official data showed that French industrial production was flat in September, compared to expectations for a 0.2% fall, after a 0.2% decline the previous month.
The pound fell to fresh 14-month lows, with GBP/USD down 0.14% at 1.5811.
In a report, the Office for National Statistics said the U.K. trade deficit widened to £9.82 billion in September from £8.95 billion in August, whose figure was revised from a previously estimated deficit of £9.10 billion.
Analysts had expected the trade deficit to widen to £9.40 billion in September.
The yen was steady, near seven-year lows against the dollar with USD/JPY at 115.23, while the Swiss franc edged higher with USD/CHF down 0.15% at 0.9719.
In Switzerland, official data earlier showed that retail sales rose at an annualized rate of 0.3% in September, disappointing expectations for a 1.0% increase. Retail sales for August were revised to a 1.4% gain from a previously estimated 1.9% rise.
Elsewhere, the commodity linked dollars were mixed. AUD/USD rose 0.37% to 0.8588 after the Reserve Bank of Australia said borrowing costs will remain low for an extended period of time.
Meanwhile, NZD/USD dipped 0.03% to 0.7689 and USD/CAD edged up 0.08% to 1.1435.
The U.S. dollar index, which tracks the performance of the greenback against a basket of six major currencies, was down 0.08% at 88.16, just below the four-and-a-half year high of 88.29 hit earlier in the session.