The dollar edged up towards a one-month high againstthe euro on Friday before monthly U.S. jobs data later in the day, withinvestors viewing the report as a key hurdle for whether the U.S. currency cansustain its rebound.A mixed bag of U.S. data released the previous day showing the economyexpanding less than expected in the second quarter, a spike in jobless claimsbut a pick-up in Midwest business activity did not prove decisive for thedollar. [ID:nN31399964]Investors are still looking for the Federal Reserve to raise interest rateslater in the year, just as mounting signs of economic slowdown from the eurozone to Australia have started to take a toll on other major currencies."The dollar proved surprisingly resilient despite Thursday's downbeat data,"said Motonari Ogawa, director of forex trading at Barclays Bank."No doubt the jobs data will generate a host of opinions, but the market islikely waiting for a surprise -- whether it be on the upside or downside -- asthe next catalyst," said Ogawa.In a Reuters poll, economists forecast that companies shed 75,000 workers inJuly in what would be the seventh straight month of job losses.The dollar was little changed from late U.S. trade near 107.77 yen
after hitting a one-month peak of 108.34 yen earlier this week.Japan Prime Minister Yasuo Fukuda was overhauling his cabinet on Friday in abid to shore up his flagging popularity, domestic media reported. But analystssaid the reshuffle of top officials should not have much impact on the yen.[ID:nT196476]The euro fell 0.3 percent to $1.5559 ,>$1.5522 hit earlier this week and well off a record peak of $1.6040 struck lastmonth. Against the yen, the euro fell 0.3 percent to 167.67 yen .>Traders said the euro's weakness against the yen, with selling emerging in Asiafollowing the recent string of weak European data, was weighing on the singleEuropean currency."The euro appears to be peaking out. The ECB hiked rates in July and inflationstill remains a threat, but indicators this week did not show euro zone economicconditions in a positive light," said Takahide Nagasaki, chief forex strategistat Daiwa Securities SMBC.Data this week showed euro zone economic sentiment hit its lowest in over fiveyears in July, pointing to a stagnant economy and boosting expectations thatinterest rates will be kept on hold this year with inflation still at a recordhigh. [ID:nL9244016]Beyond the jobs data, market players were also keeping a close eye on oilprices. The greenback recovered from its lows on Thursday as crude oil pricesin nearly four years in July.
after hitting a one-month peak of 108.34 yen earlier this week.Japan Prime Minister Yasuo Fukuda was overhauling his cabinet on Friday in abid to shore up his flagging popularity, domestic media reported. But analystssaid the reshuffle of top officials should not have much impact on the yen.[ID:nT196476]The euro fell 0.3 percent to $1.5559 ,>$1.5522 hit earlier this week and well off a record peak of $1.6040 struck lastmonth. Against the yen, the euro fell 0.3 percent to 167.67 yen .>Traders said the euro's weakness against the yen, with selling emerging in Asiafollowing the recent string of weak European data, was weighing on the singleEuropean currency."The euro appears to be peaking out. The ECB hiked rates in July and inflationstill remains a threat, but indicators this week did not show euro zone economicconditions in a positive light," said Takahide Nagasaki, chief forex strategistat Daiwa Securities SMBC.Data this week showed euro zone economic sentiment hit its lowest in over fiveyears in July, pointing to a stagnant economy and boosting expectations thatinterest rates will be kept on hold this year with inflation still at a recordhigh. [ID:nL9244016]Beyond the jobs data, market players were also keeping a close eye on oilprices. The greenback recovered from its lows on Thursday as crude oil pricesin nearly four years in July.
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