EUR/USD (a 4-hour chart)
The dollar was being traded 0.2 percent above an eight-month low against the euro while investors were awaiting the employment data yesterday to evaluate the time the Fed needs reduce its incentives.
Dollar is ready for the monthly movement against most of its 16 major counterparts ahead of a report that may show that the U.S. unemployment rate remains above the threshold for the central bank to start curtailing purchases of assets.
The yen suffered losses yesterday, compared with rivals, as the demand for security has decreased this week, and the data may show that consumer prices in Japan rose at the fastest pace since 2008.
"It is clear that FED will not cut its program this year." said Noriaki Murao, New York managing director of marketing at the bank Tokyo-Mitsubishi UFJ, " if the number of new jobs created will be a little stronger than expectations, they will not be able to stimulate too much the dollar. The risk is that soon we will see more negative reaction to the disappointment of the report."
Global FX Volatility Index JPMorgan Chase & Co. ended the day at 7.75 percent, corresponding to the lowest values since January 8. One-month implied volatility on dollar/yen 9.17, the lowest since Jan. 4.