On Monday the greenback moved higher against the peers, regaining ground after slipping in consequence of Friday’s U.S. jobs report, which indicated that the Federal Reserve could keep rates on hold for longer.
The U.S. dollar index rose to 92.49, not far from the 12-year peaks of 92.76 scaled last week.
According to the data revealed Friday, the U.S. economy added 252,000 jobs in December the Labor Department, more than the 240,000 forecast by economists.
The unemployment rate ticked down to a six-and-a-half year low 5.6%, but average earnings fell by 0.2% last month and were up by only 1.7% from a year earlier. The report prompted markets to push back expectations for the first hike in U.S. interest rates to late-2015.
The euro continued to be pressured lower by the prospects for quantitative easing by the European Central Bank as soon as its next meeting on January 22. EUR/USD was down 0.37% to 1.1797, closing in on last Thursday’s nine-year trough of 1.1753.
During the weekend, the governor of the Italy’s central bank warned that the euro zone is at risk of further deflation and said the best way to combat that threat is through purchasing government bonds.
USD/JPY rose to 119.18 in quiet trade, off overnight lows of 118.10. Markets in Japan were closed for a holiday on Monday.
The pound was lower, with GBP/USD down 0.22% to 1.5124 as recent survey data pointing to a slowdown in growth at the end of last year fuelled expectations that interest rates will remain on hold for most of 2015.
USD/CHF added 0.35% to trade at 1.0179.
A slump in global oil prices continued sending down the commodity-exposed Australian, New Zealand and Canadian dollars. AUD/USD was down 0.42% to 0.8166, NZD/USD dropped 0.80% to 0.7775 and USD/CAD was near five-and-a-half year highs at 1.1880.
Brent crude fell almost 3% on Monday after Goldman Sachs slashed its 2015 price forecast, citing rising global supplies.
