Asia Shares Open Gingerly on U.S. Inflation, Earnings Season

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Likewise, Treasury yields climbed around 10 basis points on the jobs report and the 10-year stood at 3.08% on Monday up from a recent low of 2.746%.

A hawkish Fed combined with fears of recession, particularly in Europe, has kept the dollar up at 20-year highs against a basket of competitors =USD. The dollar was firm at 136.30 yen JPY=EBS, just off its recent peak of 137.00.

The euro continued to struggle at $1.0164, having shed 2.4% last week to hit a two-decade low and major retracement target at $1.0172.

"With little economic relief on the horizon for Europe, and U.S. inflation data likely to mark a new high for the year and keep the Fed hiking aggressively, we think the risks remain skewed in favour of the greenback," said Jonas Goltermann, a senior markets economist at Capital Economics.

"Indeed, we think the EUR/USD rate will break through parity before long, and may well trade some way through that level."

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Rising interest rates and a strong dollar have been a headache for non-yielding gold, which was ailing at $1,742 an ouncehaving fallen for four weeks in a row.

Oil prices also lost around 4% last week as worries about demand offset supply constraints. O/R

Data from China due Friday are likely to confirm the world's second-largest economy contracted sharply in the second quarter amid coronavirus lockdowns.

On Monday, Brent was trading 12 cents lower at $106.90, while U.S. crude eased 34 cents to $104.45 per barrel.