Friday's disappointing US labor market data led to a strong rally in US equities. The NFP number fell notably and hugely missed expectations, with the unemployment rate also worsening.
Thus, the pressure on the Fed eased as traders were afraid the central bank might start tapering its QE program this year. That most likely won't happen, with the Fed reiterating many times that rates won't move higher for a considerable time.
Over the weekend, the European Central Bank’s chief economist stated that the road to recovery from the coronavirus would be long for the Eurozone. Philip Lane thinks the unemployment rate in the eurozone would not fall to its 2019 levels before 2023.
From other news, oil prices moved higher, while gasoline rose to a three-year high after a cyber attack on a US pipeline operator resulted in a major disruption to US supplies. The WTI benchmark jumped back above the 65 USD level.
The USD took a massive hit on Friday, which sent the EURUSD pair to 1.2150. The USDJPY pair declined below 109, but interestingly, US yields reversed their decline and closed higher on Friday, creating a nice bullish pin bar, possibly leading to higher yields this week.