By Karen Johnson Of DOW JONES NEWSWIRES TORONTO (Dow Jones)--The U.S. dollar strengthened modestly against its major rivals early Monday, rebounding somewhat from Friday's disappointing U.S. jobs data. Trading is expected to remain subdued throughout the day Monday, with U.S. markets closed for the Independence Day holiday. Analysts caution that the lack of volume could result in exaggerated movements in the North American session. Analysts at Barclays Capital said the holiday will insert a "time-out" in investors' flight from riskier assets, but added, "This does not mean the outlook for risk is improving." The euro was at $1.2527 Monday morning, from $1.2543 late Friday, according to EBS via CQG. The dollar was at Y87.73, from Y87.70, while the euro was at Y109.89, from Y109.96. The U.K. pound was at $1.5136 from $1.5185. The dollar was at CHF1.0645, from CHF1.0648. The ICE Dollar Index, which tracks the performance of the greenback against a trade-weighted basket of currencies, was at 84.597, from 84.478. "It appears that the market's focus has been shifting from the still-unresolved debt issues in the euro zone to the increasingly disappointing data coming out of the U.S. and the possibility of a double dip for the economy," said Jon Gencher, director of foreign exchange sales at BMO Capital Markets in Toronto. The disappointing U.S. jobs report for June, released Friday, did little to allay those fears. U.S. nonfarm payrolls fell by 125,000 in June, as 225,000 government workers that were hired for the 2010 census in recent months lost their temporary jobs, the U.S. Labor Department said. Only 83,000 private-sector jobs were added last month. U.S. markets reopen on Tuesday, with nonmanufacturing Institute for Supply Management data for June on the calendar. Canada morning The Canadian dollar was lower against the greenback early Monday, in thin holiday trading. The U.S. dollar was at C$1.0649 Monday morning, from C$1.0622 late Friday. "It looks like it is going to be a fairly quiet start to the week. It certainly may be even quiet for the course of the week, until Friday. The calendar is very light," BMO's Gencher said. On Friday, Canada's key monthly jobs data are due. According to a Dow Jones Newswires survey, the median analyst estimate is for the jobless rate to hold steady at 8.1%, with a net gain of 10,000 jobs. -By Karen Johnson, Dow Jones Newswires; 416-306-2022; karen.johnson@dowjones.com

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