Key for markets will be the US nonfarm payrolls report later on Friday, which will draw greater scrutiny after a slew of weaker-than-expected economic data this week underscored the headwinds from US President Donald Trump's tariffs.

Currencies were mostly range bound in the Asian session as traders stayed cautious ahead of the data release. 

The euro last bought $1.1436, having risen to a 1-1/2-month top in the previous session following hawkish remarks from the European Central Bank (ECB) at the conclusion of its policy meeting. 

"We are inclined to treat Lagarde's hawkishness, with a degree of caution, albeit given this shift in tone, we no longer see our previous forecast for a 1.50% terminal rate as the most likely outcome," said Nick Rees, Head of Macro Research at Monex Europe. 

He now expects just one more rate cut in September which will take the deposit rate to 1.75%. 

Sterling was little changed at $1.3576 having scaled a more than three year peak in the previous session, and was set to rise about 0.9% for the week. 

The Yen fell 0.27% to 143.93 per Dollar. 

Most currencies had surged against the Dollar late on Thursday, helped by news that Trump and Chinese President Xi Jinping spoke in a more than one hour long call, before paring some of their gains. 

Against a basket of currencies, the Dollar edged slightly higher to 98.85 in Asia, and was headed for a weekly loss of 0.6%. 

Analysts said Friday's jobs data would likely determine the next move in currencies.

Expectations are for nonfarm payrolls to have increased by 130 000 jobs last month, while the unemployment rate is forecast to hold steady at 4.2%, with greater risks of a rise to 4.3%. 

--Reuters--