The U.S. dollar edged lower Tuesday as the market paused ahead of jobs data that will be released later this week.
The WSJ Dollar Index, which measures the U.S. currency against 16 others, snapped a two-day winning streak, falling by less than 0.1% to 86.68. The dollar fell 0.1% against the euro to $1.1746.
Continue Reading Below
Trading was thin ahead of Friday's release of jobs data in the U.S., some investors said. Several said signs of solid jobs growth will help justify an additional interest-rate increase by the Fed this year. Economists surveyed by The Wall Street Journal predict employers added 80,000 workers in September, with average hourly earnings rising 0.3% and the unemployment rate holding at 4.4%. The economy added 156,000 jobs in August, while hourly wages rose 0.1% and the jobless rate held at 4.4%.
Fed-funds futures, used by investors to bet on central bank policy, late Tuesday showed a 78% probability that the Fed raises interest rates by the end of the year, up from around 44% a month ago, according to CME Group.
Elections in the eurozone have rattled currency markets recently. The euro fell 0.7% against the dollar Monday after an independence vote in the Spanish province of Catalonia. That came a week after the euro was jarred by German Chancellor Angela Merkel's conservative alliance losing ground in that country's election. Austria's legislative election in October and Italian elections expected to be held by May 2018 could also raise risks for the euro, analysts said.
Investors have also been watching for developments as President Donald Trump considers replacing Federal Reserve Chairwoman Janet Yellen. The administration has interviewed former Fed governor Kevin Warsh and Fed governor Jerome Powell about leading the central bank.
(END) Dow Jones Newswires
October 03, 2017 17:57 ET (21:57 GMT)