By Kyle Peterson, BridgeNews Chicago--Feb. 2
The U.S. dollar saw a softer tone overnight heading into the release of potentially weak January U.S. employment figures. The dollar weakened to a one-month low of 114.90 yen, and slipped versus the euro, though remaining in the previous range.
* * * Coming on the heels of Thursday's surprisingly weak National Association for Purchasing Management and Wednesday's 50-basis-point interest rate cut by the Federal Reserve, financial markets are highly sensitive to further signs of weakness in the U.S. economy. A BridgeNews consensus forecasts shows non-farm payrolls are seen rising by only 82,500 jobs compared with December's gains of 105,000. Dollar/Swiss franc was flat after trimming gains from a two-day high of 1.6361. Sterling/dollar has all but reversed from a three-week high of 1.4830. Meanwhile, dollar/Canada was heavy near its three-week low of 1.4918. The jewel of the U.S. economic schedule, of course, is the January jobs report due for release at 0830 ET. At 1000 ET, December factory orders will be released. U.S. traders will take a cue from the jobs report and are likely to sell the greenback lower versus both the euro and the yen.