The U.S. dollar traded higher against the most major currencies in quiet trade. No major economic reports will be released in the U.S. on Friday.

The euro traded mixed against the U.S. dollar. Concerns over the banking sectors in Southern European countries weighed on the euro.

The German consumer price index increased 0.3% in June, in line with expectations, after a 0.3% gain in May. On a yearly basis, the consumer price index in Germany rose 1.0% in June, in line with expectations, after a 0.9% increase in May.

The British pound traded mixed against the U.S. dollar in the absence of any major economic reports in the UK.

The Canadian dollar dropped against the U.S. dollar after the weaker-than-expected Canadian labour market data. Canadian unemployment rate climbed to a seasonally adjusted 7.1% in June from 7.0% in May. That was the highest level since last December.

Analysts had expected the unemployment rate to remain unchanged at 7.0%.

The Canadian economy unexpectedly lost 9,400 jobs last month, missing expectation for rise of 26,200 jobs, after adding 25,800 jobs in May.

The New Zealand dollar traded slightly lower highs against the U.S dollar. The food price index in New Zealand jumped 1.4% in June, after a 0.6% rise in May. On an annual basis, food prices in New Zealand increased 1.2% in June, after a 1.8% gain in May.

The monthly increase was driven by fresh vegetables and higher meat prices. The price of vegetables rose 8.9%. Poultry prices surged 9.9%.

The Australian dollar traded lower against the U.S. dollar after comments by the Reserve Bank of Australia Governor Glenn Stevens. He warned that the Australian dollar remained strong and there is a risk of a strong decline of the Aussie.

The number of home loans in Australia remained unchanged flat in May, beating expectations for a 0.4% decline.

The Japanese yen traded mixed against the U.S. dollar. The yen was supported by concerns over the banking sectors in Southern European countries.