By Ankur Banerjee

SINGAPORE (Reuters) -The U.S. dollar softened on Thursday in a volatile week as investors contended with bond market jitters while weighing data that showed a weakening labour market, which reinforced expectations the Federal Reserve will cut rates this month.

With the Fed focused on the labour market, Friday’s crucial jobs report will set the tone for the near-term rate outlook after data on Wednesday showed job openings fell to a 10-month low in July, although layoffs remained relatively low.

Traders are pricing in about 97% chance of the Fed cutting interest rates later this month, up from 89% a week earlier, CME FedWatch showed. They are also pricing in 139 basis points of easing by the end of next year.

The softer-than-expected job openings data weighed on the do

See Full Page