The growing complacency among foreign-exchange traders is handing Bank of Japan Governor Haruhiko Kuroda an opportunity to get the maximum effect should he choose to ease monetary policy further.
The dollar rose for the first time in four days versus the euro as declines in stocks around the world and a U.S. probe into home foreclosures boosted demand for the greenback as a refuge.
The dollar fell to its weakest level in four months against the euro as stock markets rose before a report that may show U.S. employers added the most jobs since May, curbing demand for the currency as a haven.
The euro retreated from near a nine- month high against the dollar as lingering concern about European nations’ fiscal problems damped demand for assets in the region.
Asian stocks fell and the yen strengthened on concern U.S. plans to increase oversight of financial companies and force separation of derivatives trading from other businesses may crimp earnings.
"The Australian dollar spiked after the improvement in the jobless rate. There were lots of short positions that had built up from yesterday's plunge in copper."
- Yuji Saito on Jan 14, 2015