By Kevin Buckland and Amanda Cooper
TOKYO/LONDON, June 7 (Reuters) – The dollar hovered around eight-week lows on Friday, ahead of a U.S. jobs report that could give investors a better idea of when the Federal Reserve might start cutting rates. of interest.
* The euro held on to overnight gains after the European Central Bank cut rates in a widely expected move, although it offered few clues about the outlook for monetary policy as inflation remains above target.
* At 1135 GMT, the dollar index, which compares the greenback with a basket of six major currencies, fell 0.1% to 104.05 units, close to this week’s low of 103.99, the first time which was below 104 since April 9.
* For the week, the index is headed for a decline of 0.54% after a series of weaker macroeconomic data that led investors to put two quarter-point Fed rate cuts back on the table for this year.
* This has traders bracing for a weaker nonfarm payrolls report later in the day, with the possibility of job growth falling below economists’ median forecast of 185,000.
* The euro rose 0.1% to $1.0896, after gaining about 0.2% on Thursday.
* Sterling rose 0.1% to $1.2803, not far from the week’s high of $1.2828, its highest level since mid-March.
* The Japanese currency strengthened slightly, leaving the dollar 0.1% below 155.51 yen, and on track for a loss of more than 1% for the week, its biggest weekly decline since late April, when the Japanese monetary authorities intervened in the market.
(Edited in Spanish by Carlos Serrano)
