USD/JPY falls toward 157.40 on Friday, down 0.65% on the day at the time of writing, as the US Dollar (USD) comes under heavy selling pressure following a much weaker-than-expected US employment report.

The British Pound (GBP) strengthens against the US Dollar (USD) on Friday after a disappointing US Nonfarm Payrolls report prompts traders to scale back bets on Federal Reserve (Fed) interest-rate hikes. At the time of writing, GBP/USD trades around 1.3506, hovering near three-week highs.

EUR/USD jumps 0.43% on the day and trades around 1.1570 at the time of writing, as the US Dollar (USD) comes under heavy selling pressure following a much weaker-than-expected US employment report.

Brown Brothers Harriman’s (BBH) Elias Haddad highlights growing market skepticism about Japan’s FX interventions, despite sizeable recent operations that triggered sharp but temporary Japanese Yen (JPY) rallies.

The Euro (EUR) edges higher against the British Pound (GBP) on Friday, although price action has been confined to a narrow range over the past ten trading days, suggesting that the mid-July rebound from below 0.8500 is losing steam beneath a dense cluster of moving averages.

Commerzbank’s Thu Lan Nguyen argues that the US Dollar's (USD) current support from perceived hawkish Federal Reserve (Fed) policy is likely to fade as markets reassess United States (US) rate expectations over coming quarters.

Rabobank’s Molly Schwartz and Christian Lawrence note that Mexico's central bank, Banxico unanimously kept the overnight policy rate at 6.50% on August 6 and continues to judge the stance as appropriate.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann report EUR/USD has retreated to 1.1524 after failing several times near 1.1560. Intraday, they see scope for further pullback but expect strong support at 1.1495 to hold.

USD/CAD trades around 1.4020 on Friday at the time of writing, up a modest 0.06% on the day with no clear directional bias as investors remain cautious ahead of the release of US and Canadian July employment reports.

The Australian Dollar (AUD) trades slightly higher to near 0.7040 against the US Dollar (USD) during the European trading session on Friday.

The Euro (EUR) has staged a notable recovery from its mid-June lows against the US Dollar (USD), driven in part by financial markets dialing back expectations for further Federal Reserve (Fed) interest rate hikes.

The US Dollar (USD) pares gains against the Swiss Franc (CHF) on Friday, with the USD/CHF pair drifting towards the 0.8100 level, after rejection at 0.8136 highs on Thursday.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note AUD/USD has pulled back to 0.7032 after failing to clear 0.7075, with intraday price action expected to remain range-bound between 0.7015 and 0.7055.

The Japanese Yen (JPY) has underperformed its major currency peers this week due to a lack of follow-up joint intervention by the United States (US) and Japan.

The NZD/USD pair seesaws between tepid gains and minor losses through the first half of the European session on Friday as traders opt to move to the sidelines ahead of the release of the crucial US Nonfarm Payrolls (NFP) report.

The British Pound (GBP) nurses minor gains against the (USD) for the second consecutive day on Friday, with the GBP/USD retreating to levels just below 1.3450 at the time of writing.

BNY's David Tam argues that rising U.S. rate volatility should favor safe-haven currencies, with the Yen historically benefiting from such episodes. Heavy speculative JPY shorts add another catalyst, as appreciation could force position unwinds and trigger a sharper squeeze.

The Japanese Yen (JPY) trades almost flat against the US Dollar (USD) at around 158.42 during the European trading session on Friday. The USD/JPY pair consolidates as investors await the United States (US) Nonfarm Payrolls (NFP) data for July, which will be published at 12:30 GMT.

The GBP/JPY cross struggles to extend its positive move witnessed over the past three days and consolidates around the 213.00 mark, or the top end of its weekly range, through the early European session on Friday.

Silver (XAG/USD) resumes its near-term bullish trend on Friday, after a brief hesitation on Thursday, reaching fresh six-week highs at $63.90, although it is still due to confirm the break of the resistance area at $63.30.

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

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann highlight that GBP/USD has been confined to tight ranges around 1.3455, with a slight increase in near-term downside momentum. They expect any intraday decline to stay within 1.3430–1.3475.

Commerzbank’s Michael Pfister notes that reduced expectations for Federal Reserve (Fed) tightening have helped EUR/USD climb, but questions how justified this move is.

The Canadian Dollar (CAD) trades marginally lower against the US Dollar (USD) on Friday, with the USD/CAD pair edging up to near 1.4023 in the European trading session.

The AUD/USD pair finds some support near the 38.2% Fibonacci retracement level of the May-June corrective slide and, for now, seems to have stalled its pullback from the highest level since June 17, around 0.7065, touched earlier this week.

The Euro (EUR) trades practically flat against the British Pound (GBP) on Friday, moving in a tight range above 0.8560 during the early European session, following another rejection at the 0.8680 area.

EUR/JPY halts its three-day winning streak, trading around 182.50 during the early European hours on Friday. The currency cross is retaining a bearish near-term bias as spot holds below both the nine-period and 50-period Exponential Moving Averages (EMAs).

The Euro (EUR) is trading flat around 1.1520 against the US Dollar (USD) on Friday, following a mild pullback from three-week highs at 1.1560 and on track for a minor weekly decline.

UOB Group’s Quek Ser Leang highlights that EUR/USD has staged a sharp rebound after drifting sideways, following a decline from January’s high to mid-June’s low.

The Indian Rupee (INR) opens flat against the US Dollar (USD) on Friday in the countdown to the United States (US) Nonfarm Payrolls (NFP) data for July at 06:00 PM IST or 12:30 GMT.