Dollar steady vs. rivals ahead of key U.S. employment reports

Published 10/05/2012, 06:11 AM
Updated 10/05/2012, 06:13 AM
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Investing.com - The U.S. dollar was steady against most of its major counterparts on Friday, as investors remained cautious ahead of the release of highly anticipated U.S. employment data, while comments by European Cental Bank President Mario Draghi continued to mildly support sentiment.

During European morning trade, the dollar was steady against the euro, with EUR/USD easing 0.04% to 1.3012.

On Thursday, ECB President Mario Draghi reiterated that the bank was ready to start purchasing the debt of troubled euro zone states.

Speaking at the ECB's post-policy meeting press conference, Draghi said the central bank was ready to undertake Outright Monetary Transactions when the prerequisites are in place and reiterated that the ECB was acting strictly within its mandate in undertaking a bond buying program via OMTs.

The ECB left rates on hold at a record low 0.75% earlier, in a widely anticipated decision.

Also Friday, official data showed that German factory orders fell far more-than-expected in August, dropping 1.3% after a 0.3% rise the previous month.

Analysts had expected factory orders to fall by 0.5% in August.

The greenback was almost unchanged against the pound, with GBP/USD dipping 0.01% to 1.6190.

Elsewhere, the greenback was steady against the yen, with USD/JPY edging 0.02% lower to hit 78.46, and higher against the Swiss franc, with USD/CHF adding 0.13% to trade at 0.9317.

Earlier in the day, the Bank of Japan ended a two-day policy meeting by holding the benchmark interest rate close to zero, in a widely expected move.

The central bank held off from more easing after adding to stimulus last month, keeping its asset-purchase fund at JPY55 trillion, despite increased political pressure and signs of an economic contraction.

In addition, the greenback was mixed to lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD inching 0.04% higher to 0.9808, AUD/USD adding 0.08% to 1.0248 and NZD/USD rising 0.29% to hit 0.8241.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.05%, to trade at 79.45.

Later in the day, the U.S. was to produce official data on non-farm payrolls and the unemployment rate, as well as a report on average hourly earnings.


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