LONDON (AFX) - The euro rose above 0.99 usd following the release of encouraging euro zone data, dealers said. The euro zone's economic sentiment indicator fell by less than expected to 99.4 in July from 99.6 in June. The consensus of economists polled by AFX News was for a decline to 99.2. Industrial confidence was stable at minus 10, against expectations for minus 11, while consumer confidence slipped to minus 10 from minus 9, in line with forecasts. Even better news was the rise in the euro zone's business climate indicator for July to minus 0.35 from minus 0.45 in June, signalling a resumption of its generally positive trend of the last eight months. "It is helpful to see that the euro zone economic recovery is not as weak as feared," Paribas currency strategist Hans Redeker said. "Confidence at 99.4 is a bit stronger than expected, and this could be a positive factor for the euro," Redeker said. The focus moves to this afternoon's pivotal US nonfarm payroll figures for July, which analysts polled by AFX News expect to rise by 66,000. The unemployment rate is expected to remain steady at 5.9 pct. Dealers said the flurry of weak US figures this week, including yesterday's disappointing Institute of Supply Management manufacturing activity index, has helped the euro resume its rally. "The recent data increases the possible of a double-dip recession in the US," Redeker said. In the UK, the PMI equivalent for the construction sector recorded a small rise, in contrast to yesterday's more important manufacturing sector index. "Construction only represents around 5.0 pct of GDP, and the services survey out on Monday will be more important," Deutsche Bank economist George Buckley said. Any sharp fall in the services report will strengthen the view that the next interest rate move will be a cut, following yesterday's decision by the Bank of England's Monetary Policy Committee to leave the repo rate at 4.00 pct for the ninth consecutive month.