The U.S. dollar snapped its earlier gains on Thursday, amid concerns about recent signs of economic slowdown after a parade of pessimistic economic data from the United States and the expansion of trade war.
As of 08:15, the U.S dollar index, which measures the performance of six major currencies against the U.S dollar, eased from the session high of 98.85 to trade at 98.66, after two consecutive days of losses.
Data released on Wednesday showed that the U.S. private sector has not been able to add the number of jobs expected as U.S. private sector employment rose by 135,000 in September, down from 157,000 in August, according to the Monthly ADP National Employment Report released Wednesday.
On Tuesday, U.S. manufacturing PMI slipped to its lowest level in more than a decade, indicating that the U.S.-China trade weighed on the world's largest economy.
In addition, the U.S. received the green light from the World Trade Organization to impose tariffs on the European Union, where it is predicted to become effective as soon as October 19, on the back of illegal monetary stimulus granted by the European Union for Airbus. This increased the risk of a transatlantic trade war.
The U.S. dollar rose slightly against the safe haven, the yen, after reaching 107.23, to stand above a week's lows, at 106.97 overnight. While against the Euro, the dollar fell to $1.0951.
Later in the day, eyes will focus on U.S. non-manufacturing ISM for September, factory orders, weekly jobless claims and durable goods orders.
The ISM services PMI may follow the suit of euro area and U.K., as it may slowdown to 55.1 in September from 56.4 in August.
Also, Chicago Fed C. Evans, FOMC R. Quarles and Kansas City Fed E. George will speak today.
However, the key focus will be on Friday’s non-farm payrolls report, which is mainly used as a guide by the Federal Reserve.
American employers have created 140,000 jobs last month, while
unemployment lingered at 3.7 percent, the NFP may show.