The U.S. dollar slipped lower Friday, handing back some of the previous session's gains with attention turning to the July 9 deadline for U.S. trade deals.

U.S. markets are closed Friday for the Independence Day holiday.

Dollar slips on trade uncertainty
The U.S. currency rallied on Thursday after stronger than expected U.S. jobs data pushed out the timing for potential rate cuts by the Federal Reserve.

However, these gains have proved short-lived as attention has shifted to the ongoing trade negotiations between the U.S. and a substantial number of its trading partners, with hefty tariffs set to take effect on July 9.

So far only three agreements have been announced, and U.S. President Donald Trump raised the tensions once more by announcing on Thursday that many countries will get letters on Friday specifying what tariff rates they will face, marking a shift from earlier pledges to ink individual deals with trading partners.

"It seems the market is bracing for some more tariff-related volatility," said analysts at ING, in a note. "That can be seen in the term structure of the traded FX options market, where EUR/USD volatility remains elevated for the next three weeks before starting to edge lower for the rest of the year."

Elsewhere, the Republican-controlled House of Representatives narrowly passed Trump's massive tax-and-spending bill that is estimated to add $3.4 trillion to the nation's $36.2 trillion debt.

Trump is expected to sign the bill into law on Friday.

Source: Investing.com