On Friday, all three major U.S. stock indexes
posted gains of over 1 percent, after U.S. Labor Department data showed
nonfarm payrolls increased 223,000 last month, while the unemployment
rate dropped to a near seven-year low of 5.4 percent.
The April jobs figures were seen to put the Fed on track for a rate increase as early as September, a Reuters poll found.
But U.S. short-term interest-rate futures implied traders don't expect a Fed rate hike until December at the earliest, based on CME FedWatch, as some people focused on the fact that the previous month's figures were revised to show a gain of 85,000 jobs instead of the 126,000 previously reported.
"Although April data alone does not guarantee that there won't be a U.S. rate hike sooner than expected in the coming months, there is a sense of relief for now," said Hiroyuki Nakai, chief strategist at Tokai Tokyo Research Center.
The
mixed report helped lift U.S. Treasury yields. The yield on the
benchmark 10-year note US10YT=RR stood at 2.135 percent in Asian trade,
compared to its U.S. close of 2.150 percent on Friday. The higher yields
gave some support to the dollar, which began the week firmer but still
stuck in recent ranges against major rivals.
The dollar index, which tracks the U.S. unit against a basket of six counterparts, added 0.4 percent to 95.108 .DXY. The dollar rose about 0.1 percent on the day against the yen to 119.92 JPY=, while the euro skidded about 0.6 percent to $1.1143 EUR=.
In addition to Greece's ongoing debt woes, the euro was under pressure after German Chancellor Angela Merkel's conservatives suffered an election defeat.
The Eurosceptic Alternative for Germany (AfD) party was set to win seats in a fifth regional parliament on Sunday in an election in the city-state of Bremen.
But U.S. short-term interest-rate futures implied traders don't expect a Fed rate hike until December at the earliest, based on CME FedWatch, as some people focused on the fact that the previous month's figures were revised to show a gain of 85,000 jobs instead of the 126,000 previously reported.
"Although April data alone does not guarantee that there won't be a U.S. rate hike sooner than expected in the coming months, there is a sense of relief for now," said Hiroyuki Nakai, chief strategist at Tokai Tokyo Research Center.
The dollar index, which tracks the U.S. unit against a basket of six counterparts, added 0.4 percent to 95.108 .DXY. The dollar rose about 0.1 percent on the day against the yen to 119.92 JPY=, while the euro skidded about 0.6 percent to $1.1143 EUR=.
In addition to Greece's ongoing debt woes, the euro was under pressure after German Chancellor Angela Merkel's conservatives suffered an election defeat.
The Eurosceptic Alternative for Germany (AfD) party was set to win seats in a fifth regional parliament on Sunday in an election in the city-state of Bremen.
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