NEW YORK ( BBH) -- The U.S. dollar was firmer Monday against most major currencies with the Australian and Canadian dollar leading the majors lowers.

The euro has stabilized a bit after earlier reaching a four-month low against the dollar amid ongoing concerns over European sovereign financing stress. The euro will likely remain under pressure with peripheral debt supply being the driver, as Portugal and Spain compete with Germany and France over debt issuance this week.

Cable experienced choppy price action in the early European session, but upward momentum was hampered by weak housing data. At the same time, the absence of Tokyo traders (with Japan on holiday) saw thin trading conditions and a very narrow trading range for dollar/yen. The dollar bloc currencies are hampered by a rise risk aversion with ongoing European stresses and lower commodity prices weighing on sentiment; same goes for emerging-market currencies.

Global bond markets were mostly lower, led by losses in the eurozone periphery. These spreads continue to widen ahead of this week's large supply, led by the 11 basis points rise in yields on 10-year Belgium debt, while Spain's 10-year yield is up 6 basis points as well.

Elsewhere in Europe, Portugal is in the process of making a private placement of bonds to diversify its investor base, according to the finance ministry. Market talk has centered on China as the buyer and would support the view that Portugal is getting closer to the point of not being able to access the capital markets.

Meanwhile, German 10-year yields were flat, while U.S. Treasury yields were near a two-week low on concern Portugal will follow Greece and Ireland in seeking a bailout from the European Union.
This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.