* Dollar index edges up
* U.S. CPI and ECB meeting on Thursday in focus
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
LONDON, June 7 (Reuters) - The dollar edged up as European
markets opened on Monday, recovering from Friday's drop on U.S.
jobs data which was below expectations.
The jobs data was seen as a relief for markets because it
showed a pick-up in job growth was not strong enough to raise
expectations for the U.S. Federal Reserve to tighten its
monetary policy any sooner, hurting the dollar.
There was little risk appetite in currency markets in early
trading, as equities dipped amid caution in global markets ahead
of U.S. inflation data and the European Central Bank meeting,
both on Thursday.
At 0715 GMT, the dollar index was up 0.2% on the day at
90.283. The euro was down 0.2% against the dollar, at
The Australian dollar, which is seen as a proxy for risk
appetite, was 0.2% lower at 0.7727.
Dovish rhetoric from ECB policymakers suggests the bank is
in no hurry to slow the pace of buying under the 1.85 trillion
euro ($2.24 trillion) Pandemic Emergency Purchase Programme
Meanwhile U.S. Federal Reserve policymakers have begun
inching toward a discussion about winding that help back.
"A divergence has opened up recently between the ECB and Fed
who have signalled a willingness to discuss QE tapering at
upcoming meetings," MUFG currency analyst Lee Hardman wrote in a
note to clients.
"It will help dampen upward momentum for EUR/USD. However,
the developments are not sufficient to alter our bullish outlook
the pair beyond the near-term."
Speculators decreased their net short dollar positions in
the latest week, according to calculations by Reuters and U.S.
Commodity Futures Trading Commission data released on Friday.
China's yuan hovered around the key 6.40 level, with the
offshore yuan changing hands at 6.3961 at 0732 GMT.
China's export growth missed forecasts, while imports grew
at their fastest pace in 10 years in May, fuelled by the surging
demand for raw materials, data on Monday showed.
"In general, the trade sector continues the strong
performance indicating that the manufacturing sector remains the
leading role in the post-pandemic recovery," wrote Commerzbank
senior economist Hao Zhou in a note.
"However, the trade data might have little FX market impact,
as the authorities vow to keep a stable currency for the time
Elsewhere, the United States, Britain and other large, rich
nations reached a landmark deal on Saturday to squeeze more
money out of multinational companies such as Amazon and Google
and reduce their incentive to shift profits to low-tax offshore
While investors were wary of how tech stocks would react, in
terms of currency markets, ING strategists wrote in a note to
clients that the plans for a minimum global corporate tax rate
of at least 15% could result in a repatriation of global capital
over a longer term which would be positive for the dollar.
"Our thoughts here are that the removal (of) tax havens
could have implications for the hundreds of billions of dollars
of cash parked overseas by US multi-nationals - reducing the
incentives to keep cash overseas," they said.
In cryptocurrencies, Bitcoin was up 1% around $36,166
, while ether was up 2% at $2,766. Both
were trading within the month's relatively narrow ranges.
(Reporting by Elizabeth Howcroft; editing by Emelia