Dollar under pressure ahead of non-farm payrolls

Upbeat U.S. macro data helped the dollar index edge higher in Asia on Thursday. The monthly data released by ADP showed that private sector employment increased by 497,000 in June, which was higher than market expectations of 228,000. In addition, the ISM service industry purchasing managers index improved to 53.9 from the previous value of 50.3. However, the U.S. dollar index lost traction late in the North American session and closed lower, ending its three-day winning streak.

EUR/USD edged higher on Thursday but failed to hold above 1.0900 on Friday. The pair is consolidating near this level. German data showed that industrial output fell 0.2% in May from the previous month. ECB President Christine Lagarde reiterated in an interview with La Provence on Friday that they still have work to do to bring inflation back down to target, but the comments were largely ignored by market participants.

GBP/USD climbed to 1.2800 on Thursday, but erased some of its daily gains after the release of the US data. Nonetheless, the pair registered its highest daily close in 10 days and is now holding steady around 1.2750.

USD/JPY maintains bearish pressure and continues to fall towards 143.00, with the yen benefiting from a risk-off market sentiment.

Gold traded near $1,900, while U.S. Treasury yields surged on Thursday. Gold/USD has seen a technical correction and traded above $1,910 on Friday.

U.S. non-farm payrolls outlook: Analyzing the gold price’s response to the unexpected U.S. non-farm payrolls

Bitcoin closed lower for a third straight session on Thursday, before stabilizing above $30,000 on Friday. Ethereum fell more than 3% on Thursday and is currently consolidating losses near $1,850.

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