TOKYOLONDON, Sept 6 Reuters The dollar slid to a onemonth trough versus the yen and a oneweek low on the euro on Friday, as a mixed bag of U.S. job market indicators stirred caution ahead of a crucial monthly payrolls report later in the day.

A report on Thursday showed the number of Americans filing new applications for jobless benefits declined last week as layoffs remained low. That helped allay fears that the labour market was deteriorating rapidly, after figures released the previous day showed private jobs growth slumped to a 312year low in August.

Traders currently see 41 odds for a supersized 50basis point bp Fed interest rate cut on Sept. 18, versus a 59 probability of a quarterpoint reduction, according to the CME Group39;s FedWatch Tool. A day earlier, wagers on the larger cut stood at 44, but a week ago they were 30.

The mixed data left traders guessing before Friday39;s payrolls print, with economists surveyed by Reuters predicting an increase of 160,000 jobs in August, up from a 114,000 rise in July.

Traders have sold the dollar against other currencies fairly consistently over the last couple of months, as concern has risen that a slowing U.S. economy will require chunky rate cuts.

If you look at where positioning is, people are probably banking on too much of a dovish move from the Fed, IG chief market strategist Chris Beauchamp said.

Manufacturing ISM and ADP were all dire earlier in the week and it39;s leading people to expect a negative number,…