Forex Market Update: Dollar Gaps Higher on Renewed Risk Aversion

The dollar gapped higher at the Asian open on renewed risk aversion and global growth concerns in the wake of the U.S. job loss report on Friday. However, follow-through on currencies such as GBP-USD and EUR-USD was limited with trading thin due to the absence of Tokyo for a national holiday. EUR-USD fell from highs of 1.3475 to lows of 1.3373 and pivoted around 1.3400 much of the session with expectations of an ECB rate cut this week weighing on the currency. Cable opened at 1.5132, down from the NY close of 1.5150, and fell to lows of 1.5053 before pivoting around 1.5100 but remaining heavy. Dollar bloc currencies, AUD, NZD & CAD were under particular pressure, with AUD leading the move lower after gapping lower under 0.7000 at the open and continuing to fall to 0.6899. Asian stock markets were broadly lower, except China which was bolstered by government promises to speed up stimulus measures. Oil and gold were soft on global growth concerns.