Dollar declines ahead of US unemployment claims data

Dollar fell in European trade on Thursday for a second session away from eleven-week highs as  haven demand on the greenback slowed down markedly.

Markets are now betting the Federal Reserve will pause policy tightening next week, with investors awaiting US unemployment clams data today to better gauge the path ahead.

The Index

The dollar index fell 0.25% to 103.80, with a session-high at 104.07, after losing 0.1% yesterday, the second loss in three days on profit-taking off 11-week high at 104.69.

US Rates

As wages slow down and unemployment increases and services weaken, the Federal Reserve is likely to stop policy tightening at the June 13-14 meeting. 

Most economists polled by Reuters believe the Fed won't raise interest rates for the first time in over a year at its next meeting.

Now investors await upcoming data later today on the US labor sector , specifically unemployment claims to better gauge the path ahead for the US economy.

US unemployment claims are expected at 236 thousand in the week ending June 3, up from 232 thousand in the previous reading.