The dollar was steady against major currencies in cautious trade as the market awaited this afternoon's key US jobs data Non-farm payrolls are predicted to have risen by around 205,000 in February, a strong figure which would justify expectations for further interest rate hikes in the US and allow the dollar to break higher. "A strong non-farm payroll report today would give the dollar a significant boost," said HBOS analyst Naeem Wahid, noting upside risks to the report given the strong employment component of the ISM surveys Some warned, however, that the dollar could be vulnerable if today's data disappoint, given that the market's optimism ahead of the release has allowed the currency to make significant gains "For the dollar, the fact that it has strengthened ahead of the release may leave it a little more exposed to a disappointment," said Mike Carey at CALYON UBS analyst Mansoor Mohi-uddin also pointed to other risks for the dollar, in particular yesterday's vote by the US House Appropriate Committee to prevent Dubai Ports World from acquiring the US ports belonging to P&O The result will make Middle Eastern investors less willing to invest the extra revenue generated by high oil prices into dollar denominated assets, he argued. He also noted an upcoming Congress vote on Chinese imports and risks surrounding developments with Iran. For now, however, the dollar has held up, with the euro failing to make any headway after US data yesterday revealed a further widening in the US trade deficit, demonstrating that the market remains unconcerned about US structural deficits Elsewhere, the yen remained weak across the board as it continued to suffer in the wake of yesterday's decision by the Bank of Japan to end its ultra-easy monetary policy of quantitative easing Disappointment came at the BoJ's statement that it will keep interest rates at zero pct for the time being, meaning the yen will continue to be used as a funding currency in the short term