The jobs report supported for the dollar, which had slipped to a three-year low of 88.438 late in January due to factors including perceptions of narrowing yield advantage.
• Futures markets reacted by pricing in the risk of three, or even more, rate rises from the Federal Reserve this year.
The U.S. currency dipped 0.25 percent to 109.925 yen as Friday’s Wall Street losses spilled over into Asia. The yen tends to benefit during times of risk aversion thanks to its perceived status as a safe haven.
The euro was steady at $1.2462 after losing 0.5 percent on Friday to pull away from a three-year peak of $1.2538 reached on Jan. 26.
• Germany’s 10-year government bond yield rose to their highest in almost 2-1/2 years on Monday as worries about resurgent inflation battered world bond markets.
In Germany, the euro zone’s benchmark debt issuer, 10-year bond yields rose to 0.774 percent, their highest since September 2015. German 30-year bond yields rose to two-year highs at 1.429percent.
• Today’s prints have reinforced the case for a March rate hike by the Federal Reserve and are already echoing in yields of the US 10-year note, advancing to fresh multi-year tops around2.85%. According to CME Group’s FedWatch tool, the probability of higher Fed Funds next month is at almost 78%, based on Fed Funds futures prices.
• The House of Representatives plans to vote on Tuesday on legislation to keep federal agencies operating beyond Feb. 8, when existing funds expire, a senior House Republican aide said.
The aide did not provide details, however, on the duration of this latest-in-a-series of temporary funding measures.
• Jerome Powell will be sworn in Monday morning as the 16th chairman of the Fed, on the day after his 65th birthday. He’s inheriting a US economy in its third-longest expansion on record, with unemployment and inflation near historically low levels.
• Janet Yellen said on Sunday she was disappointed that Donald Trump did not offer her a second term as chair of the Federal Reserve. But she also expressed support for her successor, Jerome Powell, who takes over on Monday.
Trump was highly critical of Yellen during the 2016 election but praised her after becoming president. He decided against reappointing the Democrat in favor of nominating Powell, a Republican.
Powell, a Fed board member since 2012, is “thoughtful, balanced, dedicated to public service”, Yellen said. “I’ve found him to be a very thoughtful policymaker.”
• The United States is considering restricting imports of Venezuelan crude oil and exports of U.S. refined products to Venezuela, U.S. Secretary of State Rex Tillerson said on Sunday, to put pressure on socialist President Nicolas Maduro to “return to the constitution.”
• The United Kingdom and the European Union are still negotiating final divorce terms, but there is "absolutely no doubt" that Brexit will negatively affect the region's aviation industry, the European Commission said Monday.
"Brexit is extremely unfortunate and it will have a negative impact on aviation more generally. There is absolutely no doubt about that," Henrik Hololei, the European Commission's director-general for mobility and transport, told CNBC.
• Negotiators for German Chancellor Angela Merkel’s conservatives and the center-left Social Democrats (SPD) will try on Monday to hammer out compromises on healthcare and labor policy - the final stumbling blocks in the way of another “grand coalition.”
• Japanese Prime Minister Shinzo Abe said on Monday he hoped the central bank would continue to promote “bold” monetary easing to achieve its 2 percent inflation target.
He also said it was premature to declare an end to deflation despite growing signs of strength in the economy.
• Oil prices on Monday extended declines from the end of last week amid a wider market sell off and a stronger dollar, with Brent crude falling to its lowest in nearly a month.
Brent was down 57 cents, or 0.8 percent, at $68.01 a barrel at 0716 GMT, after falling 1.5 percent on Friday. Brent’s weekly drop was 2.75 percent last week.
U.S. West Texas Intermediate (WTI) crude declined 47 cents to $64.98 a barrel, after dropping 0.5 percent in the previous session. WTI fell by 1 percent during the last week.
Reference: Reuters,CNBC
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