* Euro recovers modestly vs dlr after Thursday's sharp fall
* Mood remains cautious after bleak U.S. jobs numbers
* Euro zone services PMI, retail sales data awaited
* Trade seen quiet due to U.S. public holiday
(Updates prices, changes byline, dateline; previous TOKYO)
By Jessica Mortimer
LONDON, July 3 (Reuters) - The euro recovered modestly against the dollar on Friday after falling sharply in the wake of bleak U.S. jobs numbers which dampened hopes of a global recovery, though trade was quiet due to a U.S. public holiday.
Investors are awaiting the final estimate of the euro zone purchasing managers' survey on the services sector at 0758 GMT, as well as euro zone retail sales figures at 0900 GMT.
The euro and currencies such as the Australian dollar, which have benefited from investors' hopes of an economic turnaround, weakened sharply on Thursday after data showed U.S. employers cut 467,000 jobs in June, far more than expected.
But analysts said market players then bought the euro back on Friday, helping it off the lows and keeping it just above the $1.40 level, although it was still weaker than before the employment data.
They noted, however, that any recovery in the euro and other riskier currencies is likely to be limited due to concerns about the sustainability of any economic improvement.
"Because of the U.S. holiday we could see a bit of a bounce back in the euro against the dollar after the sharp falls yesterday," BNP Paribas analyst Ian Stannard said. "But the activity post the non-farm payrolls data may be the first sign that things are starting to run out of steam in terms of the currency play versus the dollar."
At 0721 GMT, the euro stood at $1.4010, up 0.5 percent from a U.S. close taken at 2130 GMT but still well below a one-month high above $1.4200 earlier in the week.
Against the yen, the euro also recovered modestly after sharp falls the previous day, trading up 0.5 percent at 134.43 yen.
The euro had also come under selling pressure after European Central Bank President Jean-Claude Trichet said on Thursday that euro zone activity would probably remain weak for the rest of the year. Earlier the ECB left its benchmark refinancing interest rate at a record low of 1 percent, as expected.
Among perceived riskier currencies, sterling rose 0.3 percent to $1.6404, while the Australian dollar gained 0.8 percent to $0.7986.
With the jobs data out of the way, traders said focus was shifting to the Group of Eight meeting on July 8-10 and the U.S. corporate earnings season that starts next week.
"Market players will watch China's comment on an alternative global currency. This is something that could take about 50 to 100 years, but the country's comment could still affect the market, even very briefly," said Tsutomu Soma, a senior manager in the foreign securities department at Okasan Securities in Tokyo.
China has been talking about diversification of the international currency system, and said it would be "normal" for the issue to be raised at next week's G8 summit..
(Additional reporting by Charlotte Cooper in Tokyo; editing by David Stamp)