TOKYO, June 7 Reuters The dollar hovered close to an eightweek low on Friday ahead of a crucial U.S. jobs report that could provide clues on the timing of Federal Reserve interest rate cuts.

The euro held on to overnight gains after the European Central Bank reduced rates in a welltelegraphed move, but offered few hints about future easing as lingering inflation clouds the outlook.

The U.S. dollar index , which tracks the currency against the euro and five other major rivals, was little changed at 104.09 as of 0453 GMT, not far from this week39;s low of 103.99, the first time it had broken below 104 since April 9.

For the week, the index was on track for a 0.54 slide following a run of weaker macro data that put prompted investors to put two, quarterpoint Fed rate cuts back on the table for this year.

That has seen traders positioned for a softer nonfarm payrolls report later in the day, with the possibility that jobs growth comes in below the 185,000 median forecast of economists.

The Federal Open Market Committee is not expected to make any change at its policy meeting next week, but markets currently price in 50 basis points of cuts by endDecember, with the first cut most likely coming in September.

We expect the overall message from the nonfarm payrolls report to be one of strength, albeit ebbing, Joseph Capurso, head of international economics at Commonwealth Bank of Australia, wrote in a client note.

We would not characterise the U.S. labour market as weak…