Dollar steady prior to US jobs report
The dollar rose slightly for the second day in succession on Friday, but all eyes are on the US employment report due for release later today.
This morning the dollar stood at 1.2093 to the euro and at 1.7552 against the pound.
Experts believe the market is in a period of limbo, waiting to see if forecasts of 200,000 new jobs have been met, which would take the total positions created to above two million for the second successive year.
The non-farm payrolls data is expected to be crucial in the market's assessment of how many more rate hikes the US Federal Reserve will impose - and consequently the dollar's trajectory.
"We're expecting a fairly strong jobs figure, so the focus is going to be on how much the dollar will benefit from the data, and where the limit to dollar buying will be," Hideaki Inoue, forex manager at Mitsubishi UFJ Trust and Banking, told Reuters.
Minutes released from the Fed's December meeting, earlier this week suggested that future increases on the current 4.25 per cent rate were likely to be negligible.