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2020.07.0211:02:00UTC+00Dollar Lower Ahead Of U.S. Payrolls Data

The U.S. dollar lost ground against its major counterparts in the European session on Thursday, as hopes for development of a coronavirus vaccine and positive economic data world wide underpinned risk sentiment.

Sentiment improved after a Covid-19 vaccine developed by German biotech firm BioNTech and U.S. pharmaceutical giant Pfizer showed potential and was found well tolerated in early-stage human trials.

The Department of Labor's June jobs report will be released at 8:30 am ET, a day earlier than usual, in observance of the Independence Day holiday.

The U.S. economy is expected to have added 3 million jobs in June, up from a gain of 2.5 million jobs in May.

While German factory sector contracted at a slower pace in June, manufacturing data from China and the U.S. topped forecasts. Wednesday's encouraging data fueled hopes of a global economic recovery from the pandemic.

The greenback fell to a 9-day low of 0.9427 against the franc, 8-day lows of 1.2527 against the pound and 1.1303 against the euro, from its early highs of 0.9464, 1.2461 and 1.1248, respectively. The next likely support for the greenback is seen around 0.92 against the franc, 1.28 against the pound and 1.14 against the euro.

The greenback dropped back to 107.34 against the yen, not far from a 3-day low of 107.33 set in the Asian session. The greenback is likely to find support around the 104.00 level. The greenback slipped to 0.6520 against the kiwi, its lowest level since June 23. Next key support for the greenback is seen around the 0.67 region.

The greenback pulled back to 0.6937 against the aussie and 1.3576 against the loonie, from its early high of 0.6905 and a 2-day high of 1.3611, respectively. The greenback is seen finding support around 0.72 against the aussie and 1.33 against the loonie.

Looking ahead, U.S. and Canadian trade data for May, U.S. jobs report for June, factory orders for May and weekly jobless claims for the week ended June 27 are due in the New York session.

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