USDCAD United States Dollar vs Canadian Dollar

The U.S. dollar drifted lower against its major rivals on Monday, in tandem with a slump in treasury yields, as traders resorted to profit taking in the wake of mixed U.S. jobs data on Friday.

The benchmark yield on 10-year note fell 2.5 percent, while that of the 2-year equivalent was down by 1.3 percent. Yields move inversely to bond prices.

Although the U.S. job growth was solid in February, monthly wages rose just 2 percent, weaker than forecasts for 3 percent growth.

Even though the report is supportive of a March tightening, the odds of a second hike dropped, as falling wages are likely to dampen inflation expectations.

The U.S. Federal Open Market Committee will begin its 2-day meeting on Tuesday, with a decision expected at 2 pm ET Wednesday. Although a 25 basis-point hike is already priced in, investors closely await the accompanying statement to gauge the likelihood of additional rate hikes in the months ahead.

The currency was lower on Friday following the release of U.S. monthly jobs data. It declined 0.1 percent against the yen, 0.2 percent against the franc, 0.9 percent against the euro and 0.01 percent against the pound for the day.

The greenback slid to 1.0714 against the euro, its weakest since February 8. On the downside, 1.085 is possibly seen as the next support level for the greenback.

The greenback that closed Friday's trading at 114.78 against the Japanese yen weakened to a 4-day low of 114.51. If the greenback extends fall, it may target 112.5 as the next support level.

Figures from the Ministry of Economy, Trade and Industry showed that Japan's tertiary activity index remained unchanged in January, after falling in the previous month.

The tertiary activity index showed no variations from December, when it dropped by 0.3 percent. Meanwhile, economists had expected a 0.1 percent slight rise for the month.

The greenback declined to a 6-day low of 1.2240 against the pound, down from last week's closing value of 1.2164. The next possible support for the greenback may be located around the 1.235 region.

Figures from Acadata and LSL showed that UK house prices increased at their fastest pace in twelve months in February.

House prices grew 0.6 percent in February from January driven by higher London prices. Average house prices totaled GBP 297,832.

The greenback fell to multi-day lows of 0.6950 against the kiwi and 0.7588 against the aussie, compared to last week's closing values of 0.6922 and 0.7535, respectively. Further downtrend may lead the greenback to support levels of around 0.72 against the kiwi and 0.775 against the aussie.

The greenback retraced its early gains against the loonie, weakening to 1.3439. The greenback is seen finding support around the 1.30 mark.

On the flip side, the greenback bounced off from an early nearly 2-week low of 1.0065 against the Swiss franc, with the pair trading higher at 1.0117. The greenback is poised to target resistance around the 1.03 zone.

Looking ahead, European Central Bank President Mario Draghi is expected to deliver opening remarks at a joint conference organized by the European Central Bank and Massachusetts Institute of Technology, in Frankfurt at 10:30 am ET.

In the New York session, U.S. labor market conditions index for February is set to be published.

At 8:45 am ET, European Central Bank board member Sabine Lautenschlaeger is expected to speak in Dublin.

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