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Forex - Dollar mostly lower ahead of jobs data, post-central bank news

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Shutterstock photo - The U.S. dollar traded lower against most of its major rivals during Friday's Asian session following a raft of central bank updates out Thursday and ahead of an important non-farm payroll report for August.

In Asian trading Friday, EUR/USD inched up 0.01% to 1.3122 after European Central Bank President Mario Draghi said the central bank's monetary policy will remain accomodative for as long as necessary and that interest rates should remain at present or lower levels for an extended period of time.

Draghi also said that downside risks, including renewed geopolitical tensions, continue to weigh on the outlook for growth. He added that euro zone countries should continue with their reform agendas and gear policies toward growth-friendly measures.

GBP/USD inched up 0.04% to 1.5597 after the Bank of England held its benchmark interest rate at 0.50% and kept the size of its asset-purchasing program unchanged at GBP375 billion, in line with expectations. Traders were not expecting big surprises out of this BoE meeting.

USD/JPY fell 0.29% to 99.81. During Thursday's Asian session, the Bank of Japan announced no new easing efforts, but BoJ did say it would look to increase its monetary base to JPY60 trillion to JPY70 trillion.

USD/CHF lost 0.11% to 0.9441 while USD/CAD dropped 0.18% to 1.0487.

In U.S. economic news out Thursday, the ADP National Employment Report showed the addition of 176,000 private sector jobs last month, but that missed the estimate calling for the addition of 180,000 new jobs. The July number was revised down to 198,000 from 200,000.

The Labor Department said initial claims for jobless benefits fell by 9,000 last week to 323,000. The less volatile four-week moving average fell 3,000 to 328,500, the lowest reading since October 2007. The Labor Department releases the August jobs report Friday before the open of U.S. markets.

The Institute for Supply Management said its August services purchasing managers index rose to 58.6% last month from 56.0% in July. That is good for the best reading since the index was created in 2008. Economists expected an August reading of 55%.

AUD/USD rose 0.16% to 0.9138, though the Aussie likely needs to push through 92 cents to stoke new buying. NZD/USD jumped 0.25% to 0.7904.

The U.S. Dollar Index fell 0.08% to 82.60. - offers an extensive set of professional tools for the financial markets.

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