The bond market has entered a financial twilight zone, and at this point, there doesn't seem to be a smooth way out.Market Insiderread more
"I think (rate cuts) will help, but whether they're going to be sufficient to counter the negative trade pressures and global growth slowdown and impact is debatable," one...Central Banksread more
China has used both monetary and fiscal measures to lift economic activity as its trade war with the U.S. looks set to intensify in the coming months.China Economyread more
Alibaba held a board meeting before its latest quarterly earnings release last week, during which the board decided to postpone the Hong Kong listing, Reuters reported.Technologyread more
President Donald Trump said on Twitter he was postponing a scheduled meeting with Denmark's prime minister because of her lack of interest in discussing a possible sale of...World Politicsread more
The two countries want to smash the civil aerospace duopoly enjoyed by Airbus and Boeing.Aerospace & Defenseread more
Federal Reserve Chairman Jerome Powell is set to deliver his annual speech on Friday at the Jackson Hole, Wyoming symposium, where he's expected to provide more clarity on the...Asia Marketsread more
After Elon Musk touts Tesla solar on Twitter, Walmart sues the electric vehicle and clean energy company over store rooftop panels that ignited.Technologyread more
U.S. and Asian investors poured $3.7 billion into U.K. tech start-ups in the first seven months of 2019, research shows.Technologyread more
Trump said he has "been thinking about payroll taxes for a long time" — and he cautioned that "whether or not we do something now, it's not being done because of recession."Politicsread more
Secretary of State Mike Pompeo privately told business executives and free traders that the trade war could end by the 2020 election and that hurdles to an immediate agreement...2020 Electionsread more
* U.S. payroll data at 1430 GMT may show drop in hiring
* Euro set for best weekly performance since September 2018
* Analysts divided on dollar's near-term direction
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
LONDON, June 7 (Reuters) - The dollar was headed on Friday for its worst week since December, before a U.S. jobs report that investors expect to bolster the case for a Federal Reserve interest rate cut.
The prospects of the Fed's reacting to an escalating China-U.S. trade row by cutting rates has dragged the dollar to a two-month low this week and helped the euro rise above $1.13.
On Friday, however, the euro on Friday relinquished all its gains from Thursday after a policy review by the European Central Bank that was less dovish than expected.
The U.S. non-farm payrolls data for May due out at 1430 GMT is expected to show a drop in hiring.
"The NFP series, more than most, tends to hold up until it falls off the edge of a cliff, and that cliff is getting closer," said Societe Generale strategist Kit Juckes.
A slowdown in the U.S. labour market was evident in a worse-than-expected ADP National Employment Report released on Wednesday.
Others are more sanguine about the dollar's prospects.
"I believe the market's assumption that the Fed is going to cut interest rates soon is premature. For now, the Fed can afford to remain patient," said Marshall Gittler, an analyst at ACLS Global.
"I would expect the dollar to recover over the medium term, although it may take some time before people realize that a rate cut is not imminent."
The ECB on Thursday ruled out raising rates in the next year and even opened the door to buying more bonds as a global trade war and Brexit drag the euro zone economy down.
But the market been expecting a stronger hint of rate cut, and consequently the euro and euro zone bond yields rose, putting more pressure on the dollar.
The euro was down 0.05% to $1.1269 but still set for a weekly gain of 0.9%, its best weekly performance against the dollar since late September last year, when it rose nearly 1.1%.
Against a basket of six other currencies, the dollar was steady at 97.042, trading about 0.3% above Wednesday's eight-week low of 96.749.
The index was on course for a 0.72% loss this week, its worst weekly performance since the week of March 15, when it gave up 0.73%. (Additional reporting by Daniel Leussink in Tokyo, editing by Larry King)