Investing.com - The euro and the yen moved higher against the dollar on Thursday as disappointing U.S. economic reports on private sector jobs creation and factory activity weighed on the dollar ahead of Friday’s nonfarm payrolls report.
EUR/USD was up 0.45% to 1.0810, off Wednesday’s lows of 1.0717.
The dollar slid lower after data on Wednesdays showing that U.S. manufacturing activity slowed last month while the U.S. private sector added fewer-than-expected jobs dampened expectations for higher interest rates.
The Institute for Supply Management said its index of purchasing managers fell to a 14-month low of 51.5 in March from February’s 52.9.
In addition, the latest ADP nonfarm payrolls report showed that the U.S. private sector added 189,000 jobs last month, below economists' expectations for jobs growth of 225,000 and the lowest since January 2014.
Another report showed that U.S. construction spending fell unexpectedly in February while the previous month’s figure was revised to show a steeper decline than previously estimated.
The soft data fuelled concerns that the Federal Reserve could push back an expected interest rate hike to September from midyear. Investors were looking ahead to Friday's government nonfarm payrolls report for March for further clarity on the path of monetary policy.
The euro’s gains were held in check as a deadlock over the Greek government’s reform plans continued.
Athens will run out of cash later this month unless it can reach a compromise with its creditors on a program of economic reforms in time to unlock more bailout funds.
Meanwhile, USD/JPY dipped 0.13% to 119.57, down from the previous session’s highs of 120.32.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies slid to 98.16.