The U.S. dollar dropped against its major counterparts in the European session on Friday, after a data showed that the economy created fewer jobs than forecast in July, partly driven by a drop in government employment and the closing of Toys "R" Us stores.
Data from the Labor Department showed that non-farm payroll employment climbed by 157,000 jobs in July after spiking by an upwardly revised 248,000 jobs in June.
Economists had expected employment to increase by about 190,000 jobs compared to the jump of 213,000 jobs originally reported for the previous month.
Despite the weaker than expected job growth, the unemployment rate edged down to 3.9 percent in July from 4.0 percent in June, matching estimates.
Data from the Commerce Department showed that the U.S. trade deficit widened in June, reflecting an increase in imports and a decrease in exports.
The report said the trade deficit widened to $46.3 billion in June from a revised $43.2 billion in May. The deficit had been expected to widen to $46.5 billion from the $43.1 billion originally reported for the previous month.
The Institute for Supply Management is scheduled to release its report on activity in the service sector in the month of July at 10:00 am ET.
The ISM's non-manufacturing index is expected to edge down to 58.6 in June from 59.1 in July.
The currency held steady against its major counterparts in the Asian session.
The greenback pulled back from an early weekly high of 0.9966 against the franc with the pair trading at 0.9937. On the downside, 0.97 is possibly seen as the next support level for the greenback.
Data from the Federal Statistical Office showed that Switzerland's consumer price inflation continued to rise in July.
Consumer price inflation rose to 1.2 percent in July from 1.1 percent in June. The rate came in line with expectations.
The greenback depreciated 0.4 percent to 111.37 against the yen, after rising to a 2-day high of 111.87 hit at 4:00 am ET. The greenback is poised to find support around the 110.00 level.
The latest survey from Nikkei showed that Japan's services sector continued to expand in July, albeit at a slower pace, with a PMI score of 51.3.
That's down from 51.4, although it remains above the boom-or-bust line of 50 that separates expansion from contraction.
Following a 5-week high of 1.1562 hit at 4:00 am ET, the greenback reversed direction against the euro and was trading lower at 1.1602. Continuation of the greenback's downtrend is likely to see it challenging support around the 1.18 region.
Data from IHS Markit showed that euro area private sector growth eased in July, ceding most of the momentum gained in the prior survey month.
The composite output index fell to 54.3 in July, in line with flash estimate, from 54.9 in June.
The greenback was trading weaker at 1.3016 against the pound, down from more than a 2-week high of 1.2976 seen at 3:45 am ET. The greenback may target support around the 1.32 level, if it falls further.
Survey data from IHS Markit showed that British service sector growth eased more-than-expected in July to the weakest level in three months.
The IHS Markit/Chartered Institute of Procurement & Supply Purchasing Managers' Index dropped to 53.5 in July from 55.1 in June. The index was forecast to drop to 54.7.
The greenback slipped to a 2-day low of 1.2980 against the loonie, moving away from a high of 1.3039 set at 4:00 am ET. The next likely support for the greenback is seen around the 1.28 level.
Reversing from its early 2-week highs of 0.7348 against the aussie and 0.6720 against the kiwi, the greenback fell and was quoted at 0.7390 and 0.6746, respectively. The greenback is seen finding support around 0.75 against the aussie and 0.69 against the kiwi.
The U.S. ISM non-manufacturing composite PMI for July is due at 10:00 am ET.
