The US dollar posted modest gains in the European session, rebounding from a fall recorded after the US NFP jobs report was published last Friday.
At the time of writing, the dollar index that measures the strength of the greenback dollar is trading steady at around 95.90 against a basket of major currencies.
The increase in jobs in the US fell short of expectations in December, making markets worried it would hurt the Federal Reserve’s (Fed) decision to raise interest rates.
Still, stronger wage growth and a persistent unemployment rate showed a decline, proving the US job market is strong.
Investors ’focus is now targeted on Fed Chairman Jerome Powell who will testify before the Senate on Tuesday (New York session).
Meanwhile, the pound remained strong around the latest highs for the year, showing the price approaching the 1.3600 level against the US dollar.
The main focus of pound currency investors this week is the publication of UK Gross Domestic Product (GDP) data for November which is expected to show the economy returning to pre-pandemic levels for the first time.
Meanwhile, the euro was little changed, slightly easing from last Friday's gains following the weakness of the US dollar and rising European Zone inflation last month.
