Concern over U.S. economy underpins ratecut expectations
Market focus on Friday39;s U.S. jobs report
Options markets preparing for large moves
Dollar at onemonth low vs yen, euro and sterling higher

LONDON, Sept 5 Reuters The dollar touched onemonth lows against the yen and was under pressure against other major currencies on Thursday as growing concern over the U.S. economic outlook underpinned expectations of a supersized rate cut from the Federal Reserve next week.

The yen touched a onemonth high earlier in the day, in part due to safehaven demand, but also on the view that imminent rate hikes from the Bank of Japan, while other central banks cut rates, could lift the Japanese currency due to narrowing interest rate differentials.

Global markets have been on edge and stocks, in particular, have been badly bruised after softerthanexpected U.S. data this week reignited concerns that the growth outlook of the world39;s largest economy was less rosy than earlier thought and the labour market could be slowing more sharply than expected.

Ahead of Friday39;s allimportant U.S. nonfarm payrolls report are readings on privatesector employment, weekly unemployment claims and servicesector activity, all of which could stir up some volatility, City Index market strategist Fiona Cincotta said.

A lot are going to be on the sidelines for what were going to be seeing tomorrow. The data has the potential to either confirm or refute these recession fears that weve seen hovering…