The U.S. Dollar edged slightly higher against the Euro ahead of important U.S. non-farm payroll data which will be released today. However, it fell slightly against the Japanese yen.
The gain of the U.S. Dollar was supported in part by traders adjusting their positions before the release of the non-farm payroll data which is expected to be released by 12:30 GMT today. Some analysts expect an increase in the number following an increase of 9,000 jobs reported by the U.S. private sector.
In a poll conducted by Reuters, most economists forecast that 75,000 workers will lose their jobs in July, which means 7th straight months of job losses.
Recent data shows the U.S. economy shrunk during the last quarter of 2007 because of a) weekly jobless claims increased and b) second quarter GDP was weaker than expected. All these factors have put investors on the edge.
According to analysts, because investors view the U.S. economy to be weak, the U.S. currency will retreat from gains made over the past few weeks.
On August 1, 2008 at 08:26 GMT, the U.S. Dollar fell by 0.3% against the Japanese Yen to 107.50 Yen, and the Euro also fell against the Japanese Yen to 167.33 Yen. However, the Euro fell by 0.3% against the U.S. Dollar to $1.5557.