The U.S. dollar was hovering near three-week lows on Friday ahead of payrolls data that will likely influence the outlook for rates, while the pound was firm as the Labour party looked set to win a massive majority in the UK general election.

Pound strengthens but FTSE loses ground after US jobs data - Sterling was up about 0.3% against the US dollar at 1.28, and 0.2% against the euro at 1.1825 on Friday afternoon.

The London stock market advanced Friday after Britain's centre-left Labour Party clinched an expected landslide election victory to end 14 years of right-wing Conservative rule. London's benchmark FTSE 100 index climbed following news that Keir Starmer will become Britain's new prime minister after Labour trounced Rishi Sunak's Conservatives.

The U.S. dollar index fell slightly on Friday after data showed U.S. job growth slowed marginally in June while the unemployment rate rose, underscoring the view the Federal Reserve could begin cutting interest rates in September.