Dollar sharpens decline to one-week trough

US dollar fell in European trade against a basket of major rivals for the fourth session to week lows, ahead of crucial labor data. 

The dollar index fell 0.35% to 96.81, the lowest since June 24, after closing down 0.25% yesterday, the third loss in a row. 

Strong industrial and services data around the world, especially China and Europe, in addition to optimism about a new vaccine candidate for Covid 19 with promising results, all hurt the haven appeal of the greenback. 

From the US, non-farm payrolls are expected up 3.037 million in June, while average earnings are expected down 0.8%, as the unemployment is expected down to 12.4% from 13.3%. 

Unemployment claims for the week ending June 26 are expected down 130K to 1.35 million, while continuing claims for the week ending June 20 are expected down 522K to 19 million. 

US goods trade deficit is expected up to $53 billion from $49.4 billion, while factory orders are expected up 8.6%. 

The Federal Reserve released the minutes of its June 9-10 meeting, at which policymakers voted to maintain rates at near zero. 

The Fed expects rates to be maintained at zero until 2022 and for the US economy to contract by 6.5% in 2020 and for unemployment to reach 9.3% by the end of 2020.