Dollar Falls Amid Caution Ahead of U.S. Jobs Data

Dollar Falls Amid Caution Ahead of U.S. Jobs Data

The dollar fell slightly as traders exercised caution ahead of the key U.S. nonfarm payrolls report due Friday.

The dollar has recently risen strongly in a short space of time so there is potential for a short-term pullback, "perhaps by virtue of some profit-taking" ahead of the jobs data, Pepperstone strategist Michael Brown said in a note.

Brown said he's "reluctant to read too much" into the dollar's current retracement and remains positive on the currency's medium-term prospects.