NEW YORK ( BBH) -- The U.S. dollar consolidated around Friday's closing level with the major's overall slightly weaker, driven mainly by technical and positional adjustments as opposed to fundamentals. The euro traded up Monday to reach two-month highs, but faced profit-taking on the way down to $1.355 lows. Overall, with U.S. traders inheriting books at Monday's lows, the selling pressure may continue. Cable drifted back towards $1.595 as the dollar edged higher on the back of positioning adjustment. The dollar, meanwhile, remains rangebound against the yen, with the dollar remaining close to the 83.00 yen area, but is likely to find a boost this week as economic data may be supportive of yield differentials. Elsewhere, the Australian dollar struggled to sustain the A$0.990 handle amid cross-related supply after a benign PPI release reinforced expectations of a steady hand from the Reserve Bank of Australia. Global bonds were mostly mixed with Asian bonds mostly selling off. In Europe, the rise in peripheral yields were led by Ireland, with the 10-year up nearly 4 basis points after Ireland's Green Party withdrew from the government coalition on Sunday, while Portuguese President Anibal Cavaco won election to a second term. The Greek 10-year yield was down 10 basis points and the Spanish down 5 basis points, while the compression of eurozone periphery spreads has continued amid signs of improvement in European economic data. Yet with the markets focused clearly on European inflation, a weak CPI print this week could lead to euro losses. 10-year German bunds were flat following the recovery in periphery spreads, while the 10-year gilt was down 2 basis points. In the emerging-markets space, Turkey increased its reserve requirements.