A Reuters poll showed median forecasts are for 175,000 U.S. jobs being shed in October, slower than the 263,000 lost in September, with the jobless rate rising to 9.9 percent.

If the numbers disappoint, investors are likely to turn to the dollar and the yen, while a strong report could see high-yielding currencies gain, although analysts are doubtful investor risk appetite will be quite as bullish as it had been earlier this year.

“If the number is as expected, it may continue to favour risk-on trades,” said Koji Fukaya, a senior currency strategist at Deutsche Securities in Tokyo.

“But the Fed has already shown commitment to an easy policy for an extended period while upgrading its economic outlook, so a jobs number in line with expectations will only reaffirm its view.”

An index that measures the dollar against six other major currencies was unchanged from late U.S. trade at 75.700, while the euro, the biggest component of that basket, was also steady at $1.4875.

The euro held steady near 135 yen, having gained nearly 0.1 percent on Thursday. The yen was unchanged at 90.75 per dollar and traders said Japanese exporters were said to be ready to sell into moves above 91 and 135, respectively.

Higher-yielders the New Zealand and the Australian dollars have gained more than 20 percent and 30 percent, respectively, against the dollar this year, with low U.S. rates turning the greenback into a funding currency to buy assets with higher returns.

Amber Rabinov, a market economist at ANZ in Melbourne, said a strong jobs number could lift the two currencies but warned profit-taking would weigh on any sudden gains.

“We don’t think there is much room for them to rally as participants are very long on pro-cyclical currencies like the Aussie and the Kiwi,” she said.

The Australian dollar rose to $0.9130 from just below $0.9100 in late New York trade on Thursday, after the central bank said rates would likely have to rise gradually as it sharply upgraded forecasts of economic growth for next year.

The central bank raised rates for the second month in a row this week but the market now sees less than a 50 percent chance of another increase as soon as December.

The Group of 20 finance ministers and central bankers start a meeting in Scotland on Friday seeking to firm up a plan to rebalance the world economy.

Foreign exchange rates are not expected to be a major topic but the market will keep an eye on what they discuss.

The pound rose to $1.6612 from about $1.6575 on Thursday when the Bank of England expanded its asset purchase programme by 25 billion pounds.. (Additional reporting by Charlotte Cooper in Tokyo and Anirban Nag in Sydney; Editing by Chris Gallagher) REUTERS

Oil rises above $80 amid stock market surge

SINGAPORE (AP) — Oil prices rose above $80 a barrel Friday in Asia as crude investors eyed a surge in global stock markets.

Benchmark crude for December delivery was up 47 cents to $80.09 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract fell 78 cents to settle at $79.62 on Thursday.

Oil traders often look to stock markets for a sense of overall investor sentiment, and the Dow Jones industrial average rose 2.1 percent Thursday on better-than -expected jobless claims numbers and positive forecasts by Cisco Systems Inc. All major Asia indexes were also up in early Friday trading.

Crude investors are also watching signs in recent weeks of a drop in U.S. oil supplies, which increased sharply this year as demand shrank. Some analysts forecast higher oil prices next year as the economy strengthens and demand recovers.

“We expect fundamentals to improve as oil demand growth resumes,” Morgan Stanley said in a report. “Until the oil market tightens, oil will be dragged in the wake of other risky asset price moves.”

Morgan Stanley said it expects oil to average $85 a barrel next year.

Crude has crisscrossed the $80 level for the last few weeks as investors mull weak U.S. consumer demand and a volatile dollar.

In other Nymex trading, heating oil rose 1.16 cents to $2.07 a gallon. Gasoline for December delivery gained 0.99 cent to $2.00 a gallon. Natural gas for December delivery fell 1 cent to $4.78 per 1,000 cubic feet.

In London, Brent crude for December delivery rose 66 cents to $78.65 on the ICE Futures exchange.