Dollar Steadies Amid Mixed Economic Signals Ahead of U.S. Jobs Data

The dollar remained stable as investors assessed mixed economic signals before the U.S. jobs report. While the labor market showed sluggishness, the services sector picked up pace. Analysts suggest cautious Fed rate decisions amid geopolitical tensions and potential tariff rulings impacting currency markets.

The dollar remained steady on Thursday as investors assessed a variety of economic data suggesting a precarious state of the U.S. economy ahead of Friday's pivotal jobs report. Rising geopolitical tensions have further weighed on market sentiment.

Currency movements were minimal, with the euro holding at $1.1678 and the yen stable at 156.78 per dollar. Key focus is on the nonfarm payrolls report after mixed signals from the labor market, which showed unexpected gains in services sector activity.

Traders are anticipating Fed rate cuts despite a divided central bank, while external factors such as impending Supreme Court decisions on tariffs might influence the dollar's trajectory. Analysts foresee potential shifts in Fed strategies in response to economic uncertainties and geopolitical dynamics.

(With inputs from agencies.)