The dollar weakened and US stock futures slipped as traders prepared for US jobs data that may determine the size of a Federal Reserve interest-rate cut this month.
Bloomberg’s gauge of the greenback fell for a third day amid speculation a worse-than-expected payrolls outcome could spur the central bank into making a jumbo 50 basis-point cut at its September meeting.
Asian equities were mixed ahead of the numbers, while Hong Kong stock trading was shut due to a typhoon.
The yen strengthened. There’s limited event risk to be concerned about in Asia “so again the session will be defined by further pre-positioning ahead of US payrolls,” said Chris Weston, head of research at Pepperstone Group in Melbourne.
“Traders will use the time in front of the screens to review, massage and manage positioning and exposures and the possible cross-market volatility that can kick up.”
Treasury yields edged lower after falling Thursday, adding further downward pressure on the greenback. The benchmark 10-year yield dropped one basis point to 3.71%.
