NEW YORK (Reuters) - The dollar turned mixed on Thursday, finding spotty support from solid U.S. data that suggested the U.S. labor market continues to strengthen despite signs of an economic slowdown in the first quarter.
A rally for the euro against the dollar and yen was seen being dictated by investors taking profits on recent greenback strength heading into the long Easter holiday weekend that will be punctuated by the important March U.S. employment report on Friday."If someone had a position of dollar strength and euro weakness heading into the report, this euro gain today is likely some profit taking and/or positioning by Europeans who won't be around to trade it on the day. That's creating this volatility as people head out for the long holiday weekend," said John Doyle, director of markets at Washington, D.C.-based Tempus Inc.Markets in most of Europe will remain shut on Friday and Monday for Easter holidays. The U.S. bond market will have a shortened session while the U.S. stock market will be shut on Friday.On Thursday, data showed the number of weekly applications for new employment benefits fell unexpectedly while February's U.S. trade deficit narrowed to it lowest point since October 2009. However that still is unlikely to change views that U.S. economic growth slowed sharply in the first quarter. "This data, after disappointments, will help the dollar but the focus is still on Friday's jobs report," said Vassili Serebriakov, currency strategist at BNP Paribas in New York. A Reuters poll expects non-farm payrolls to rise by 245,000 jobs in March, after gaining 290,000 in February.