At 12:30 GMT, the US economy released it reading for the average hourly earnings for July, which rose by 0.2%, beating forecasts of a drop by 0.5%, and better than the previous reading of -1.3%. This data is considered positive for the US dollar.

At 12:30 GMT, the US economy released revealed the unemployment rate for July at 10.2%, better than forecasts of 10.5%, and the previous reading of 11.1%. This data is positive for the US economy.

The US dollar rose on Friday, recovering from the 27-month low that was hit yesterday, heading for its first gain in four days, ahead of the US jobs report for July, which delivers insight on the coronavirus economic impact.

The dollar index rose over 0.4% to 93.22 points, after opening at 92.81, and hit an intraday low of 92.76 points.

The greenback slipped 0.1% yesterday, its third straight daily loss, and a 27-month low of 92.52 points.

The US dollar has lost 0.4% so far this week, to head for the seventh straight weekly loss, amid doubts about the US economic recovery from the coronavirus crisis.

The US dollar is also being weighed down by Democratic and the Republican parties failure on launching a new relief plan.

Investors are anticipating the release of key data later today, as the non-farm employment change reading will be released at 12:30 GMT, with forecasts of adding 1.550 million jobs in July vs. 4,800 million jobs in June, and the unemployment rate is expected to drop to 10.5% from 11.1%, while the average hourly earnings is expected to drop by 0.5% vs. -1.2%.

Oil prices continued to fall as the US market opened on Friday, to deepen losses for the second straight day, pulling back from a 5-month high on profit-taking, amid concerns over the recovery of the US economy from the coronavirus impact, especially after the failure of launching a new stimulus package.

US crude fell 1.4% to $41.37, after opening at $41.96, and hit a session-high of $42.20, and Brent fell 1.3% to $44.56, after opening at $45.14, and hit a high of $45.28 .

US crude lost 0.5% yesterday, posting its first daily loss in 5, after hitting 5-month high of $43.50 on Wednesday, and Brent futures fell over 0.4%, after posting the highest since last March at $46.22.

Alongside profit-taking, oil prices are being weighed down by the mounting concerns over the recovery of the US economy, especially after Republicans and Democrats failed to agree on launching a new stimulus package.

Additionally, coronavirus infections continued to spike in several US states, which raised doubts about the US fuel demand recovery.

The US Energy Administration reported on Wednesday a drop in commercial inventories by 7.4 million barrels in the week ending July 31, passing estimates of a 3.4 million.

Total inventories tumbled to 518.5 million barrels, the lowest since April 10 in a positive sign for US demand. 

US output fell 100 thousand bpd last week to a total of 11 million bpd, while remaining the world's top producer.