The euro was under pressure on Friday but has rebounded against a weaker dollar in trading this morning

The euro slid a further 0.4% against the US dollar on Friday, coming under pressure as an easing of risk appetite buoyed demand for the haven currency.

• Dollar gained ground quickly across the board at the end of last week as profit taking extended from commodity currencies to other majors.
  
• Analysts also pointed to comments from Jean-Claude Trichet, president of the European Central Bank in explaining the euro's decline.
  
• In a speech at the European Banking Congress, Mr Trichet said the ECB would gradually withdraw the emergency cash it had pumped into the economy, to ensure it did not fuel inflation. Market participants are concerned that recovery could stumble as stimulus measures are unwound.
  
• In trading this morning, the single has recouped its losses, already up over a cent, in the wake of dovish comments from US central banker James Bullard.
  
• In his speech he supported extending the central bank's purchases of mortgage- backed securities beyond the first quarter of next year, bolstered the view that interest rates are likely to remain at record lows.