Euro made strong gains vs the dollar on Friday; continues to do so today with the US markets on holiday

The euro made strong gains against the dollar on Friday as risk sentiment was supported by US payrolls data, with the pairing closing up at 1.4296.

• The single currency initially fell against the greenback on Friday, after the US jobs report showed that the unemployment rate rose to a 26-year high of 9.7%, discouraging risk appetite.
  
• However a report also showed that non-farm payrolls declined by 216K, in August, an improved figure from the 276K revised drop seen in July.
  
• Reaction to this news was relatively muted reaction, but the single currency was supported as investors began to digest the information and realise the positive signs.
  
• The US stock markets were also supported by the data which in turn helped the euro as investors were encouraged away from their safe haven.
  
• Some analysts have speculated that the strengthening of the greenback following positive payrolls data could mark a further step towards the changing relationship of the dollar to economic data and risk sentiment.
  
• There is no economic data released today in the US as markets are closed, whilst in the eurozone, monthly figures on German factory orders are published at 09:30BST.