Dollar edges lower as focus turns to U.S. jobs report.
The dollar edged lower on Tuesday as investors turned their attention to the upcoming U.S. jobs report for July, which could reinforce expectations for higher interest rates.
EUR/USD inched up 0.12% to 1.0963 from 1.0949 late Monday.
The dollar has been boosted by expectations that the improving U.S. economy will prompt the Federal Reserve to raise short term interest rates in the coming months, possibly as early as September.
Investors were looking to the government nonfarm payrolls report, due to be released on Friday. The consensus forecast is that the report will show jobs growth of 215,000 last month.
Monthly jobs gains above 200,000 are seen by economists as consistent with strong employment growth.
The dollar softened following the release of disappointing U.S. economic reports on Monday.
Official data showed that U.S consumer spending slowed in June and a separate report showing that manufacturing activity moderated in July.
Another report showed that U.S. construction spending rose at the slowest rate in five months in June.
The U.S.dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, slid 0.17% to 97.43.