Author of the article:

TOKYO — The dollar was poised to extend

gains against major currencies on Monday after the U.S. jobs

report at the end of last week showed the nation’s labor market

is recovering from the impact of the coronavirus shock.

The focus now shifts to data on the U.S. services sector due

later on Monday, which is forecast to show an acceleration in

activity that could further encourage dollar bulls.

In January-March the dollar posted its best quarter against

major currencies in almost three years thanks to an improving

U.S. economy and rising Treasury yields.

The U.S. currency is likely to build on those gains as

investors look for ways to bet on a global economic recovery

from the worst of the coronavirus pandemic, analysts said.

“I thought there would be a correction lower in the dollar,

but that didn’t happen,” said Masafumi Yamamoto, chief currency

strategist at Mizuho Securities.

“The dollar’s upward trend is very strong. In the new

quarter perhaps the best thing for investors to do is to just

follow this trend.”

The dollar was last quoted at 110.63yen, not far

from its strongest level in a year.

Against the euro, the dollar traded at $1.1765,

which is close to a five-month high.

The British pound held steady at $1.3824.

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The dollar edged up to 0.9423 Swiss franc.

The U.S. economy created more jobs than expected in March,

data showed on Friday. However, there was scant reaction in

currencies as most major stock and bond markets were closed for

Easter holidays.

Trading could be subdued again on Monday in Asia as

financial markets in Australia, China, and Hong Kong are also

closed, although the bias is for the dollar to strengthen

further, analysts said.

A survey from the Institute for Supply Management due later

on Monday is expected to show U.S. non-manufacturing activity

expanded at a faster rate in March, which could underpin the

greenback on its forward march.

The dollar index against a basket of six major

currencies was little changed at 92.973,

Dollar short positions in the currency market fell last week

to the lowest since June last year, U.S. Commodity Futures

Trading Commision data showed – another positive sign for the

greenback.

Elsewhere, the Australian dollar edged up to

$0.7616, while the New Zealand dollar bought $0.7028.

========================================================

Currency bid prices at 0025 GMT

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change

Session

Euro/Dollar $1.1765 $1.1752 +0.11% -3.70% +1.1768 +1.1752

Dollar/Yen 110.6300 110.6700 +0.00% +7.15% +110.7400 +110.6700

Euro/Yen 130.17 130.13 +0.03% +2.54% +130.2500 +130.1300

Dollar/Swiss 0.9423 0.9408 +0.19% +6.54% +0.9430 +0.9421

Sterling/Dollar 1.3824 1.3825 -0.04% +1.16% +1.3830 +1.3820

Dollar/Canadian 1.2568 1.2585 -0.13% -1.30% +1.2586 +1.2566

Aussie/Dollar 0.7616 0.7591 +0.34% -0.99% +0.7620 +0.7607

NZ 0.7028 0.7017 +0.16% -2.13% +0.7031 +0.7023

Dollar/Dollar

All spots

Tokyo spots

Europe spots

Volatilities

Tokyo Forex market info from BOJ

(Reporting by Stanley White

Editing by Shri Navaratnam)

In-depth reporting on the innovation economy from The Logic, brought to you in partnership with the Financial Post.

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