The U.S. dollar continued to be higher against its key counterparts in early New York trading on Monday, as Friday's stellar July jobs data boosted confidence about the strength of the economy, supporting the case for a Fed rate hike this year.
The Labor Department said non-farm payroll employment surged up by 255,000 jobs in July after jumping by an upwardly revised 292,000 jobs in June. Employment had been expected to increase by about 185,000 jobs.
Traders await the U.S. weekly jobless claims data on Thursday, followed by the retail sales and producer prices reports for July and preliminary results of the University of Michigan's consumer sentiment report for August, all due on Friday, for more clues about the underlying strength of the economy.
The U.S. Treasury yields rose, with the yield on the benchmark 10-year note rising 1.60 percent. Yields move inversely to bond prices.
In an interview with The Financial Times last week, Federal Reserve Governor Jerome Powell advocated patience about raising rates, citing risks of the economy being trapped in a prolonged period of subdued growth.
Powell hinted that the Fed should pursue a "very gradual" path of policy tightening, as low inflation justifies the need to "be patient."
The currency has been trading in a positive territory in the European session.
The greenback was trading higher at 1.1081 against the euro, up from a low of 1.1105 hit at 12:45 am ET. The greenback is likely to find resistance around the 1.08 zone.
Survey results by Sentix showed that Eurozone investor confidence improved in August as the outcome of the "Brexit" referendum had little impact on economic expectations.
The investor sentiment index rose more-than-expected to 4.2 in August from 1.7 in July. It was forecast to increase to 3.6.
The greenback advanced to 0.9833 against the Swiss franc, its strongest since July 28. This marks a 0.3 percent increase from last week's closing value of 0.9799. If the greenback-franc pair extends rise, 1.00 is possibly seen as its next resistance level.
Data from the Federal Statistical Office showed that Switzerland's consumer prices dropped 0.2 percent on a yearly basis, but slower than the 0.4 percent decrease registered in June. This was the slowest fall since November 2014.
Economists had forecast a 0.3 percent drop.
Extending early rally, the greenback climbed to a 6-day high of 102.66 against the yen. The pair was worth 101.79 when it finished Friday's trading. On the upside, 104.00 is likely seen as the next resistance level for the greenback.
Data from the Bank of Japan showed Japan's overall bank lending rose 2.1 percent on year in July, standing at 499.590 trillion yen.
That was above forecasts for 2.0 percent, which would have been unchanged from the June reading.
The greenback was trading in a positive territory against the pound with the pair trading at 1.3058, off its early low of 1.3096. The next possible resistance for the greenback may be found around the 1.28 area.
