As we head into the end of the week, the US dollar is losing strength, with its depreciation becoming more evident on Thursday.
The attraction to the king of currencies is fading as investors are cautious ahead of important data to be published later this week, namely the US NFP employment report for November.
Early indications are less encouraging when the ADP reading measuring private employment published on Wednesday came in with weaker-than-expected figures.
Investors are now awaiting the NFP report published in the New York session tonight (Friday) at 9.30pm local time, which comes along with Canadian employment data.
This latest reading is important for the market to reassess the increase in jobs in the US following the previous report, the published figure of 12,000 was inaccurate due to the disaster that struck.
Forecasts show an increase of around 218,000 jobs for November with the unemployment rate likely to remain at 4.1%.
The latest report will drive the Federal Reserve (Fed) members' views on further monetary policy ahead of the FOMC meeting on December 19.
After that, the Fed's next clue will be US inflation data to be published next week.
Indicators for the US dollar are currently still showing gloomy signals with the dollar index (DXY) falling to 105.800 points while the US 10-year treasury yield fell below 4.20%.
Investors are taking precautions with expectations of a major impact on price movements in the last session of this week when the NFP report is in focus.
