USD rose slightly against most of its major rivals in the European session on Friday ahead of the release of a crucial U.S. jobs report for June due at 12:30 GMT, which is expected to help determine the pace of improvement in the labor market and may affect the Federal Reserve’s economic outlook.

The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, inched up 0.03% to 92.63.

Economists forecast that today's employment report will show that the U.S. employers added 700,000 jobs in June, while the unemployment rate edged down to 5.7% from May's 5.8% and hourly earnings rose 0.4% m/m and 3.7% y/y. 

There are fears that better-than-expected jobs readings and signs of rising inflation, which could be underpinned by higher-than-forecast annual wage gains, might lead to a hawkish reaction from the Fed policymakers.