Investors were not immediately enthusiastic about Friday's US employment report. The 211k monthly increase in the number of people on nonfarm payrolls was bigger than expected but there was disappointment that the annual pace of pay increases had slowed to 2.5%. As in Britain and elsewhere, inflation in the States is hard on the heels of wages, eroding consumers' spending power. Nevertheless, speeches by several Federal Reserve bosses kept alive the expectation that interest rates will go up next month and, possibly, once more before Christmas.
The dollar strengthened by a cent against the euro, which was suffering from the anticlimax of Emmanuel Macron's win in the French presidential election. It added a quarter of a cent against sterling because, having started the week well, the pound was hampered by unexpected and disappointing falls in manufacturing and industrial production.