TOKYO, Aug 21 Reuters The dollar slipped to its lowest this year versus the euro on Wednesday as traders braced for potentially crucial revisions to U.S. payrolls data later in the day, ahead of a speech by Federal Reserve Chair Jerome Powell at the end of the week.

The U.S. currency also dipped below the closely watched 145 yen level and hovered close to the morethanoneyear low to sterling reached overnight.

Pressure notably came from U.S. bond yields , which hit their lowest since Aug. 5, when yields crashed to a morethanoneyear trough after surprisingly soft monthly jobs figures sparked recession fear.

The reduced yield premium in the U.S. Treasury market has been a clear factor driving the USD lower, said Chris Weston, head of research at Pepperstone.

As we can see in so many USD pairs of late, the USD just can39;t find a friend in the market and is in free fall.

A weak monthly payrolls report at the start of this month was a catalyst for a spike in volatility across asset classes, leaving market participants bracing for another potential shock with revised data due later Wednesday.

The Aug. 2 payrolls report sent traders racing to price in prospects of the Fed needing to slash interest rates by a half percentage point at its midSeptember policy meeting, pushing the implied probability of such a move to about 71, according to CME Group39;s FedWatch Tool.

However, a run of better macroeconomic data has since seen the odds flip, with bets now 72 for a…