Before the release of the eagerly awaited monthly U.S. jobs data, the U.S. dollar dipped slightly in early European trade on Friday, on track to snap a six-week winning streak.

Any indications of labor market strength would give the Federal Reserve greater motivation and leeway to continue raising interest rates.

Expectations of a spike in inflation were stoked by higher-than-expected inflation rates in the region's three largest economies—Germany, France, and Spain—but this did not occur.

Despite the fact that inflation is still over goal and board member Isabel Schnabel, a well-known policy hawk, has acknowledged that eurozone growth is weaker than anticipated only a few months ago, there is a great lot of uncertainty hovering the European Central Bank's upcoming policy meeting.

Expectations of a spike in inflation were stoked by higher-than-expected inflation rates in the region's three largest economies—Germany, France, and Spain—but this did not occur.

EUR/USD advanced by edged 0.1% to 1.0848, with the euro seeing modest gains after dropping 0.7% in the previous session as a result of information indicating that core inflation in the eurozone declined in August.

GBP/USD slumped by 1.2668.

USD/JPY slipped 0.1% to 145.50