* Dollar little changed vs euro, currency basket
* U.S. currency holds gains after strong payrolls
* Analysts see consolidation ahead of Fed meet
(Recasts, updates throughout; previous TOKYO)
By Naomi Tajitsu
LONDON, Aug 10 (Reuters) - The dollar was little changed against the euro and a currency basket on Monday, holding gains following a broad rally late last week on surprisingly strong U.S. jobs figures.
Despite slipping a touch against the yen, the U.S. currency was supported by data last week showing a smaller-than-expected fall in U.S. payrolls, which suggested employment may be turning a corner after extreme weakness.
"We had a big move on Friday, so we'll be seeing some consolidation today," said Martin McMahon, currency strategist at Credit Suisse in Zurich, adding that the dollar may be prone to some profit taking on Monday.
He said investors wanted to see if the dollar's latest move was a sign of a breakdown of the recent correlation between the U.S. currency and risk demand -- in which economic data suggesting an improving global economy would batter the dollar as it would increase risk appetite.
By 0752 GMT, the euro was little changed at $1.4190, hovering near a one-week low around $1.4150 hit in the aftermath Friday's data.
The pair traded well off the year's high of $1.4448 hit earlier last week, and some in the market said that a 0.8 percent fall in European shares on Monday was helping to weigh on the single European currency.
Against a currency basket, the dollar was little changed at 78.914, while the U.S. currency inched down 0.3 percent against the yen to 97.30 yen, after rallying as high as 97.79 yen on Friday.
Traders in Tokyo cited dollar selling by Japanese exporters as the main driver weighing on the slide in dollar/yen in Asian trade, but the dollar managed to pull away from the day's low around 97.10 yen early in the European session.
Some analysts said a rise in Treasury yields in the aftermath of the payrolls were helping to support the dollar for the moment, because this increased the appeal of U.S. government debt for some investors, including those from overseas.
FED AWAITED
Analysts said that whether the dollar extends its latest gains may hinge on the actions of the Federal Reserve, which holds a policy meeting later in the week.
The Fed is seen ending a controversial scheme to buy $300 billion of longer-dated Treasuries in September, but some in the market were open to the possibility that policymakers may discuss extending a separate program to promote the flow of credit to consumers and businesses.
Many analysts expect the Fed to hold the overnight fed funds rate in its zero-0.25 percent range, and some say that the Fed may want to discourage speculation of a near-term rate rise, after the payrolls reading boosted some expectations of possible monetary tightening early next year.
"The Fed is the big question later in the week -- What do they do?" said McMahon at Credit Suisse.
"Do they extend their buy-back programme or not? If they do there could be a potentially big impact on the dollar (downwards), and if they don't, it could go the other way." (Editing by Ruth Pitchford)