The dollar edged higher against the euro and the yen Thursday ahead of the much-anticipated May US jobs report.
The monthly employment report, which will be released Friday morning, is expected to show the US added 225,000 jobs last month.
"Non-farm payrolls is the next major catalyst for a break higher in the dollar," said Kathy Lien, analyst at BK Asset Management.
While a good jobs report is "likely," it "is not a done deal," Lien said, adding that other key economic data has sent mixed signals.
"There`s no doubt that the US economy and the labor market is improving, but the dollar is also overbought so even if it pushes higher on the back of a strong jobs number, it could be hit by profit-taking next week" ahead of a Federal Reserve policy decision on June 17, Lien said.
A strong labor report Friday would boost the chances for a Fed rate hike "sooner rather than later" and raise expectations of such a move in 2015, said David Song, currency analyst at DailyFX.
2100 GMT Thursday Wednesday.
