LONDON (ShareCast) - The dollar received a boost from better than expected US jobs market figures while the Federal Reserve’s efforts to boost liquidity in the banking system also buoyed demand for the currency.

The dollar started the session on strong footing against the euro and the yen, but as the day progressed and oil started to rise sharply, demand for the greenback waned.

The jobs report from revealed an extra 9,000 jobs were added in the US private sector during July compared with expectations of a 60,000 drop.

An announcement by the Federal Reserve and the European Central Bank of longer-term credit to sooth money markets also eased concern about the global economy. Wall Street’s late rally also buoyed dollar demand.

European data showing an unexpected drop in economic sentiment dampened euro sentiment.

Sterling fell to a three-week low against the dollar as concern about the weakening UK economy continues to eat into demand for the currency.

Traders are now keenly awaiting Thursday’s US GDP figures and non-farm payrolls on Friday.

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