The U.S. dollar continued to trade near its highest level against the euro for almost a month on the forex news that the recovering labour market is likely to reduce the chances of a further Federal Reserve intervention.

“We’re consolidating after a very eventful week in which it seems the nonfarm payrolls report was probably the last and most significant impact on the currency markets,” said Vassili Serebriakov, a currency strategist at Wells Fargo & Co. in New York. 

“In the U.S., a strong retail sales report and/or a more optimistic Federal Reserve could easily see the euro test the lows.”

The greenback little changed at $1.3126 per euro as of 9:28 a.m. New York time. The currency slid 0.4 percent to 82.13 yen, after touching 82.65 at the end of last week, the highest since April 27. The euro declined 0.4 percent to 107.81 yen.

Despite news of solid progress in the U.S. jobs market, forex traders were still reticent to take out any large dollar positions ahead of a Federal Reserve policy meeting on Tuesday.

"The market is focused a little more on what looks like an improving U.S. economy and how that will translate to Fed policy going forward," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington.