Dollar on back foot, sterling eyes last-ditch Brexit talks

The dollar started the week on the back foot on Monday after soft U.S. jobs data only solidified expectations of a fresh economic package, while the British pound eyed last-ditch trade talks between the United Kingdom and European Union.

The dollar index stood little changed at 90.783, having hit a 2 1/2-year low of 90.471 on Friday. The euro changed hands at $1.2126, having climbed on Friday to as high as $1.2177, a level last seen in April 2018.

Friday's U.S. jobs data showed non-farm payrolls increased by 245,000 last month, the smallest gain since May, in a sign the jobs recovery is losing momentum on the third wave of coronavirus infections. traders perceived the data as putting pressure on Washington to pass a new round of stimulus to help the coronavirus-battered economy, keeping overall risk appetite intact and capping the U.S. dollar against riskier currencies.

Sterling traded little changed at $1.3415, stepping back from 2 1/2-year high of $1.3540 touched on Friday as investors looked to talks between Britain and the EU this week to avert a chaotic parting of ways at the end of the year. it fell to as low as $1.3360 after weekend talks stalled on three thorny issues. Prime Minister Boris Johnson and European Commission President Ursula von der Leyden are due to hold a call on Monday evening in the hope that, by then, differences over fishing rights waters around the United Kingdom, fair competition and ways to solve future disputes will have narrowed.