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U.S. Dollar Moves To The Downside Following Jobs Data

After initially showing a lack of direction, the value of the U.S. dollar moved to the downside over the course of trading on Friday.

Currently, the U.S. dollar is trading at 106.57 yen versus the 107.34 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1106 compared to yesterday's $1.1085.

With the drop on the day, the value of the U.S. dollar extended the downward move seen over the court of trading on Thursday.

The greenback moved lower after the Labor Department released a report showing U.S. job growth slowed in the month of July but came in line with economist estimates.

The report said non-farm payroll employment climbed by 164,000 jobs in July after jumping by a downwardly revised 193,000 jobs in June.

Economists had expected employment to increase by 164,000 jobs compared to the spike of 224,000 jobs originally reported for the previous month.

The Labor Department also said the unemployment rate held at 3.7 percent in July, unchanged from June and in line with economist estimates.

"Overall, this report won't be enough to move the needle much in either direction as far as a September rate cut is concerned, but it reinforces our sense that another move next month isn't yet as sure a thing as the markets are now pricing in," said Andrew Hunter, Senior U.S. Economist at Capital Economics.

Traders also continue to react to President Donald Trump's plans to impose a 10 percent tariff on the remaining $300 billion worth of Chinese imports.

Trump revealed the plan shortly after U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin wrapped up the latest round of trade talks in Shanghai.

The president accused China of failing to follow through on pledges to buy large quantities of U.S. agricultural products and stop the sale of Fentanyl to the U.S.

The new tariffs announced by Trump represent the latest escalation in the trade war between the U.S. and China, which has been a dark cloud over the global economy for over a year.

In typical fashion, China responded to Trump's announcement by threatening to take necessary countermeasures to protect the country's interests.

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