Major currencies still little changed overall for the most part
The greenback is a little softer as we begin the session, giving back some of its gains from Friday following the more steady US jobs report. That saw markets scramble to reprice Fed rate cut expectations later this month and helped the dollar gain at the time.
But as we start the new week, the dollar is giving back some of those gains in the wake of slightly softer risk sentiment. US yields are down after gaining strongly on Friday, with 10-year yields down by 1.9 bps to 2.015% currently.
Despite the kiwi and aussie pushing gains, both currencies are only trading in a 17 pips and 23 pips range respectively against the dollar. EUR/USD is also holding within a 15 pips range to start the European morning as price holds near the highs around 1.1230.
With equities and yields slightly softer for the most part, the yen is also holding minor gains with USD/JPY near session lows at 108.30 now.
Looking ahead, I reckon it’ll be a case of markets trying to digest and square up moves following the non-farm payrolls release on Friday with an eye on Fedspeak this week (with Fed chair Powell due to make an appearance tomorrow).