By Omer Esiner of TravelexThe U.S. dollar fell further from last week's 10-month trade-weighted high as investors unwound defensive positions in the greenback in search of higher returns in riskier assets. Last week's agreement on a financial backstop for indebted Greece helped reduce investors' nervousness, prompting a pullback in some of the market's bets against the single currency, which had reached record levels last week. While the euro may benefit further over the near term from short-covering and position-squaring, its longer-term outlook should remain undermined by the high level of uncertainty about Greece and other peripheral eurozone nations. With Europe, the U.K. and Canada closed for trading on Good Friday, volumes should dry up toward the end of this week. Still, the main event for markets remains Friday's U.S. jobs data for March. Many are forecasting the first major rise in net job creation this month, a development that would likely revive talk of the Federal Reserve leading other major central banks in monetary policy normalization. The U.S. dollar's downside should remain somewhat limited ahead of the even risk of Friday's all-important employment report. The rebound in commodities and risk appetite saw the dollar bloc currencies from Australia, New Zealand and Canada outperform. The Aussie was particularly well bid after hawkish comments from the central bank governor underscored the outlook for another rate hike next week. Investors await U.S. personal income and spending numbers later this morning. EUR: The single currency firmed further off of its recent lows against the greenback and Canadian dollar overnight, benefiting from a continued reduction in investors' bets against it. Market positioning against the euro had reached a record peak last week amid heightened concerns about the outlook for Greece. The EU's ability to reach an agreement on a financial backstop for Athens helped reduce concerns about a potential Greek default and prompted many to trim some short EUR positions from their portfolios. While the EUR could find some more demand over the very short term, its longer-term outlook remains clouded. Similar debt problems in other peripheral countries should keep sovereign credit risk high on investors' list of worries over the months ahead. Moreover, the needed fiscal tightening to bring budget deficits in the eurozone down will ultimately hurt growth and postpone any policy normalization from the European Central Bank. Consequently, investors continue to view EUR rallies as selling opportunities. Data overnight showed a stronger-than-expected rise in eurozone economic sentiment in March, figures that were consistent with a brightening outlook for the 16-member bloc's recovery.