The dollar loses some of the gains in the employment data

The dollar fell on Monday, losing some of its gains on the back of strong US employment data released on Friday, as currency markets reversed their initial reaction.
The higher-than-expected US employment data last week boosted the dollar’s strength once morest the major currencies.
Traders saw the data as an indication that the Federal Reserve may raise interest rates further to tackle inflation.
But this rise was reversed in early European trading, on Monday, with the dollar index falling to 106.25 by 07:50 GMT, down 0.4% on the day, compared to its highest level in ten days on Friday, at 106.930.
Markets are now awaiting the release of US inflation data, on Wednesday, to receive more indications of the activity of the largest economy in the world.
Analysts polled by Archyde.com had expected annual inflation to decline to 8.7% in July, compared to 9.1% previously.
The Australian dollar recovered following its losses, on Friday. By 07:51 GMT, it was up 0.9% on the day at $0.697.
The New Zealand dollar also rose 0.4% to $0.627. The dollar fell once morest the Japanese currency to 134.945 yen.
Bond yields in the euro zone fell once more following rising following the release of employment data, on Friday. Italian bonds seemed to ignore Moody’s decision to cut Italy’s outlook.
The euro rose 0.2% to $1.02095. The British pound rose 0.4% to $1.2118. (Archyde.com)