Dollar index extends downside to 4-month low; US payrolls data eyed

The dollar index extends downside on Thursday to hit a four month low and well below 105 mark amid weaker-than-expected labor market data and rising trade tensions. New US tariffs on Canada, Mexico, and China have led to retaliatory measures from those countries, raising concerns of an escalating trade war that could impede US economic growth. Meanwhile, US ADP National Employment Change report showed that US private sector hiring increased by 77K in February, significantly missing the 140K forecast and falling well below Januarys strong 186K gain. Traders will now be eyeing Friday's release of Februarys Nonfarm Payrolls figures. The dollar index that measures the greenback against a basket of currencies is quoting at 104.13, down 0.12% on the day. Among basket currencies, EURUSD and GBPUSD are holding around a four month high of $1.0821 and $1.2907 respectively.

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