The U.S. dollar was generally firmer against most of the major and emerging market currencies to start the new week. It staged a reversal of sorts before the weekend and has followed through Monday. The euro ran out of steam after poking through $1.27. Support near $1.2550 has been tested in Europe and a break could signal losses toward last week's low near $1.2480.

Weighed down by poor gross domestic product details and dismal current account figures, sterling has broken below $1.50 for the first time since July 1. Despite poor electoral results for the ruling DPJ, which would seem to weaken the fiscal austerity efforts, the yen is little changed against the dollar but firmer on the crosses.

Short-term momentum indicators warn that it may be difficult to sustain the dollar's upside momentum in North America Monday.

Asian shares were mostly higher, but European bourses have struggled to maintain early gains. Declines in Japan and Taiwan offset gains elsewhere and the MSCI Asia-Pacific Index slipped 0.2%. Of note, while the Topix shed 0.4%, the index of bank shares lost 2% Monday. Rising commodity prices helped the basic materials and oil and gas sectors in the region. The Shanghai Composite continued its recovery, posting gains for the fourth time in five sessions, with technology and consumer services leading the way.

European bourses were narrowly mixed, though the Spanish market is off around 1.4%. Telecoms, consumer services and financials were suffering the most.

A safe-haven bid has returned to the core bond markets, with 10-year German bund yields off 5 basis points and the U.S. 10-year Treasury yield 3 basis points lower. The 10-year yield in Japan fell 3 basis points as equity market weakness appeared to offset policy uncertainty after the election results. European supply this week will draw attention.

A global leader with close to 200 years of experience, Brown Brothers Harriman helps many of the world's most sophisticated mutual funds, investment managers, banks and insurance companies achieve their international business objectives. BBH provides specialist services and innovative solutions to clients that include a global custody network of close to 100 markets, accounting, administration, securities lending, foreign exchange, cash management and brokerage services. BBH operates a global business through 14 locations, including New York, Boston, New Jersey, Philadelphia, Charlotte, Chicago, Dallas, London, Dublin, Luxembourg, Zurich, Grand Cayman, Hong Kong and Tokyo.

More from Currencies

Bank of England Holds Rates Steady, But Vote Shift Signals Hawkish Tone

Bank of England Holds Rates Steady, But Vote Shift Signals Hawkish Tone

Bitcoin Today: Prices Close to Flat in Low-Volume Trading

Bitcoin Today: Prices Close to Flat in Low-Volume Trading

Markets Wobble as U.S. Readies More China Tariffs

Markets Wobble as U.S. Readies More China Tariffs

Watch These Two Crypto Experts Fiercely Debate the Future of Regulation

Watch These Two Crypto Experts Fiercely Debate the Future of Regulation

Bitcoin Today: Prices Attempt to Rally Following Early Weakness

Bitcoin Today: Prices Attempt to Rally Following Early Weakness