Forex Today: US Dollar on the back foot ahead of all-important jobs report

Here is what you need to know on Friday, July 7:

The US Dollar (USD) is having a hard time finding demand early Friday as investors stay on the sidelines while waiting for the US Bureau of Labor Statistics to release the labor market data for June. Meanwhile, the cautious market stance stays intact amid rising global bond yields, with US stock index futures trading in the red in the European morning. Statistics Canada will also release the June jobs report later in the day and European Central Bank (ECB) President Christine Lagarde will be delivering a speech.

US Nonfarm Payrolls Forecast: June NFP release expected to show moderating job creation.

Upbeat macroeconomic data releases from the US helped the US Dollar Index (DXY) edge higher during the American hours on Thursday. The monthly data published by the ADP revealed that employment in the private sector 497,000 in June, surpassing the market expectation of 228,000 by a wide margin. Additionally, the ISM Services PMI improved to 53.9 from 50.3. The DXY, however, lost its traction in the late American session and closed in negative territory, snapping a three-day winning streak.

EUR/USD registered modest gains on Thursday but failed to stabilize above 1.0900. Early Friday, the pair moves sideways slightly below that level. Earlier in the session, the data from Germany showed that Industrial Production contracted 0.2% in May. In an interview with La Provence on Friday, Lagarde reiterated that they still have work to do to bring inflation back down to their target but this comment was largely ignored by market participants.

GBP/USD climbed toward 1.2800 on Thursday but erased a portion of its daily gains after the US data. Nevertheless, the pair registered its highest daily close in 10 days and was last seen holding steady at around 1.2750.

USD/JPY stays under bearish pressure and continues to stretch lower toward 143.00, with the Japanese Yen benefiting from the risk-averse market atmosphere.

Gold price came within a touching distance of $1,900 amid surging US T-bond yields on Thursday. XAU/USD stages a technical correction and trades above $1,910 early Friday.

US June Nonfarm Payrolls Preview: Analyzing Gold price's reaction to NFP surprises.

Bitcoin closed in the red for the third straight day on Thursday before stabilizing above $30,000 early Friday. Ethereum lost more than 3% on Thursday and was last seen consolidating its losses at around $1,850.