Agency: Weak U.S. Jobs Data Could Spark Short-covering Against the Dollar

The dollar was steady for now as traders awaited U.S. non-farm payrolls data due tonight.
The dollar was higher on Thursday after the ADP employment report and the ISM services PMI data were both stronger than expected, suggesting that the Federal Reserve will raise interest rates further.
But analysts at UniCredit Research warned that non-farm payrolls may not be as strong.
Despite the strong ADP data, the agency and the market expect net job creation in June to be less than May’s 339,000.
Therefore, weaker-than-expected U.S. jobs data could trigger short-covering against the greenback.
However, any strong data will push the dollar higher.