Investing.com - The dollar continued to hover at near nine-month highs against the euro on Thursday as markets bet that Friday's July jobs report will point to an improving labor market even if it misses expectations.
In U.S. trading, EUR/USD was down 0.05% at 1.3389, up from a session low of 1.3372 and off a high of 1.3400.
The pair was likely to find support at 1.3318, the low from Nov. 8, and resistance at 1.3444, Tuesday's high.
The Labor Department on Friday will release its July nonfarm payrolls report, and consensus forecasts see the U.S. economy picking up 230,000 new jobs.
Even if the figure comes in below that number, a reading over 200,000 would represent six straight months of beating that threshold, a sign the labor market is improving even if it's still a little slack.
Earlier Thursday, the Labor Department reported that the number of individuals filing for unemployment assistance in the U.S. last week rose by 23,000 to 302,000 from the previous week’s total of 279,000. Analysts had expected jobless claims to rise by 22,000 to 301,000.
The Labor Department added that the employment cost index rose by 0.7% in the three months to June after a 0.3% increase in the first quarter. Economists had expected a 0.5% gain.
The dollar continued to see support from Wednesday's U.S. gross domestic product report.
The U.S. GDP expanded at an annual rate of 4.0% in the three months to June, blowing past forecasts for a 3.0% reading, according to the Commerce Department. The contraction in the first quarter was revised to 2.1% from a previously reported 2.9%.
Personal consumption grew 2.5%, well above predictions of 1.9%.
Meanwhile across the Atlantic, Eurostat, the statistical office of the European Union, revealed that the euro area's consumer price index slowed to a five-year low of 0.4% in July from 0.5% in June, missing expectations for an unchanged reading.
The inflation rate fueled expectations for the European Central Bank to implement further stimulus measures to shore up growth and stave off deflationary pressures in the currency bloc.
A separate report showed that the unemployment rate across the euro area fell to 11.5% in June from 11.6% last month. It was the lowest rate since September 2012.
Elsewhere, the euro was up against the pound, with EUR/GBP up 0.07% at 0.7926, and down against the yen, with EUR/JPY down 0.08% at 137.26.
On Friday, markets will move on the U.S. nonfarm payrolls and the unemployment reports, while the Institute of Supply Management is to release data on manufacturing activity.