Dollar edges lower ahead of US job data

Dollar edges lower ahead of US job data

The ADP National Employment Report on Thursday showed U.S. payrolls rising at a slower-than-expected pace last month.

Trading on Friday is quieter with London markets shut for a public holiday.

The dollar eased 0.1% to 101.75 against a basket of other major currencies, while the euro inched up 0.1% to $1.0747.

Investors have had mixed views on the greenback since it hit a 10-year high in mid-May.

George Saravelos, global head of forex research at Deutsche Bank, said the dollar is "pricing a safe-haven risk premium that is so extreme it rarely has persisted over time and is now in the process of unwinding".

Bullish analysts argue that the Fed's tightening cycle is based on a sturdier growth story than Europe's, especially after the Russian oil embargo, which might hurt the economy of the euro area.

The European Union has agreed an embargo on Russian crude oil imports that will take full effect by the end of the year.

"The USD recovery on the back of new hawkish signals from the Fed is lacking momentum, with the dollar index having difficulty holding the 102 handle again," Unicredit analysts said in a research note.

They pointed to Fed Vice Chair Lael Brainard's comments on Thursday that it was "very