The greenback is still reeling in gains from Friday's solid jobs report
And that's very much reflected in what we're seeing to start the new week in Asian trading. Although the trading ranges remain narrow, the dollar is extending higher against the likes of the euro and yen as we move towards European trading in a bit.
That said, I'm not sold onto gains from the non-farm payrolls data as we all know how solid the US labour market has been over the past year or so. If anything, the silence in trade talks and the fact that markets are left in limbo is more of a contributing factor that is keeping the dollar steady in my view at least.
The aussie and yen are two currencies on the back foot as we approach the next session with the former coming under pressure from poor building approvals data earlier, while the latter is offered on the back of a decent performance in Japanese stocks despite mixed risk sentiment across other assets.
US equity futures and Treasury yields are still flat at the moment and those tones should be reflected in European assets later in the day as well. That should keep USD/JPY gains limited and the 110.00 psychological barrier (offers and large expiries also at the level) will also act as a further resistance level for the pair before US traders enter the fray later today.
