MUFG’s Michael Wan notes that softer US non-farm payrolls and suspected FX intervention supported the Japanese Yen, pushing USD/JPY sharply lower. He highlights that weaker payrolls reduce the likelihood of a near-term Fed rate hike but do not clarify the broader labour and inflation outlook.

Here is what you need to know on Friday, July 3:

Silver price (XAG/USD) jumps to the weekly high near $62.15 during the early European trading hours on Friday. The precious metal extends the rally as a weaker-than-expected US Nonfarm Payrolls ‌(NFP) report has reduced expectations of Federal Reserve (Fed) interest rate hikes this year.

The NZD/USD pair posts a fresh weekly high at around 0.5725 during the European trading session on Friday. The Kiwi pair reflects strength as risk-on market sentiment due to a slight cool down in hawkish Federal Reserve (Fed) expectations has improved the appeal of antipodeans.

Commerzbank’s Tatha Ghose expects Turkey’s June Consumer Price Index (CPI) to show a modest disinflation surprise, with headline and core rates easing slightly and month-on-month inflation potentially below 1%.

The Australian Dollar (AUD) appreciates for the second consecutive day against a weaker US Dollar (USD) on Friday, still weighed by Thursday’s US Nonfarm Payrolls’ disappointment.

UOB’s Quek Ser Leang highlights that EUR/USD failed to extend gains after spiking to 1.1472 and is now expected to consolidate between 1.1410 and 1.1455 intraday.

EUR/JPY rises after two days of losses, trading around 184.50 during the Asian hours on Friday.

The USD/CAD pair struggles to capitalize on the previous day's modest bounce from a nearly two-week low and turns lower for the second straight day following a modest Asian session uptick to the 1.4200 neighborhood.

The Indian Rupee (INR) opens slightly higher against the US Dollar (USD) on Friday. The USD/INR pair drops to near 95.26 due to broader underperformance in the US Dollar, following the release of the weak United States (US) Nonfarm Payrolls (NFP) data for June on Thursday.

USD/CHF extends its losses for the second successive day, trading around 0.8020 during the Asian hours on Friday. The pair depreciates as the US Dollar (USD) loses ground amid a disappointing set of domestic labor data released on Thursday, easing bets on a Fed rate hikes.

The GBP/USD pair trades in positive territory around 1.3360 during the early European session on Friday. The British Pound (GBP) gathers strength against the US Dollar (USD) on a weaker-than-expected US Nonfarm Payrolls (NFP) report.

The EUR/USD pair attracts some dip-buyers during the Asian session on Friday, stalling the previous day's modest pullback from the 1.1470-1.1475 region, or a nearly two-week high.

The AUD/JPY cross trades in positive territory around 111.75 during the early European trading hours on Friday. The Australian Dollar (AUD) strengthens against the Japanese Yen (JPY) following the Chinese economic data.

XAG/USD gains ground for the fourth consecutive day, trading around $62.60 per troy ounce during the Asian hours on Friday.

The NZD/USD pair gathers strength to around 0.5705 during the Asian trading hours on Friday. The New Zealand (NZD) remains strong following the Chinese economic data. The US markets will be closed on Friday in observance of Independence Day. 

The AUD/USD pair turns positive for the second straight day following a modest Asian session downtick to the 0.6910 region amid the emergence of fresh US Dollar (USD) selling.

USD/CAD inches higher after registering modest losses in the previous day, trading around 1.4190 during the Asian hours on Friday. The currency pair is holding its ground as a tug-of-war unfolds between a weakening crude oil market and soft economic data out of the United States (US).

The USD/JPY pair attracts fresh sellers following a modest Asian session uptick to the 161.50 region and turns lower for the second straight day on Friday.

On Friday, the People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead at 6.8047 compared to the previous day's fix of 6.8088 and 6.7808 Reuters estimate.

The GBP/USD pair trades with mild gains near 1.3350 during the early Asian trading hours on Friday. The US Dollar (USD) edges lower against the British Pound (GBP) on a weaker-than-expected US Nonfarm Payrolls (NFP) report. The US markets will be closed on Friday in observance of Independence Day. 

The EUR/USD pair declines to around 1.1420 during the early Asian session on Thursday, pressured by a soft Eurozone inflation outlook. The US Dollar (USD) strengthens against the Euro (EUR) despite disappointing US June labor data.

Thursday belonged to the US Dollar, not the Aussie. A soft American payrolls print sent AUD/USD spiking toward 0.6950 on release, before it gave most of that back to close well off its high.

Societe Generale reports that the Korean Won remains under selling pressure despite strong export growth and a wider trade surplus. USD/KRW has broken above the 1,550 psychological level, with interim resistance identified higher.

The Mexican Peso advanced, boosted by a weaker-than-expected US jobs report that weighed on the US Dollar, which was also undermined by a rumored intervention in FX markets by Japanese authorities. At the time of writing, the USD/MXN trades at 17.48, down 0.43%.

The NZD/USD pair advanced toward the 0.5700 level on Thursday as the US Dollar (USD) weakened following softer-than-expected United States (US) employment data.

The Pound bounced off the long-term support line that has repeatedly held near its seven-month lows, clawing back toward the cluster of moving averages overhead.

The Yen rebounded from four-decade lows on Thursday, a move that owed nothing to the Bank of Japan (BoJ). A soft June Nonfarm Payrolls (NFP) print knocked the Dollar, while fear of a fresh intervention jumped hard enough to push USD/JPY toward its first weekly loss in eight weeks.

The USD/CHF recoils from two-day highs at 0.8120 after weaker-than-expected US data weighed on the Greenback, which trades with losses of 0.55% against a basket of six currencies, known as the US Dollar Index (DXY). The pair trades at 0.8035, near ten-day lows.

The Australian Dollar (AUD) trades on the front foot against the US Dollar (USD) on Thursday as a weaker-than-expected US Nonfarm Payrolls (NFP) report pushed back expectations of an imminent Federal Reserve (Fed) interest rate hike.