USD Faces Pressure Ahead of NFP Release on Thursday Holiday Trading

USD index holds steady at 106.20 ahead of Thursday's crucial Non-Farm Payrolls report, with markets anticipating 190K job additions for June. The unusual Thursday release comes as US markets will be closed Friday for Independence Day, creating potential for heightened volatility with reduced liquidity. Recent ADP employment data showed 150K private sector jobs added, below the 165K forecast, suggesting possible NFP disappointment. Major pairs show mixed sentiment with EUR/USD trading at 1.0825, GBP/USD at 1.2640, and USD/JPY holding 161.50. Traders are closely monitoring the unemployment rate forecast at 4.0% and average hourly earnings expected at 3.9% YoY. A weaker-than-expected report could pressure the dollar further and fuel speculation of earlier Fed rate cuts, while strong data might support USD strength. Key resistance for DXY sits at 106.50, with support at 105.80.