* 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 stabilised on Monday
after dropping on Friday following lower-than-expected U.S. jobs
data, and currency markets broadly lacked momentum as investors
looked ahead to key inflation data later this week.
Friday's jobs data was seen as a relief for markets, showing
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, and this hurt the dollar.
There was little movement in major currency pairs during the
early European session on Monday. World shares were trading near
At 1125 GMT, the dollar index was flat on the day at 90.141
. The euro was down 0.1% against the dollar, at $1.2159
The Australian dollar, which is seen as a proxy for risk
appetite, was up 0.2% versus the U.S. dollar at 0.77535
"After Friday, were looking at a foreign exchange market
thats still got no reason for the Fed to change its tune, so
weve still got accommodative monetary policy in the United
States," said Kit Juckes, head of FX strategy at Societe
Generale. "But on balance were getting more optimistic about
the global economic and health outlooks."
Market participants were focused on U.S. inflation data and
the European Central Bank meeting, both on Thursday.
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
But 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 6.3960.
China's export growth missed forecasts and imports grew at
their fastest pace in 10 years in May, fuelled by surging demand
for raw materials.
"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 rich nations
reached a 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 havens.
Investors were wary of how tech stocks would react, in terms
of currency markets, but 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 2% around $36,535
, while ether was up 4.2% at $2,825. Both
were trading within the month's relatively narrow ranges.
(Reporting by Elizabeth Howcroft; editing by Emelia
Sithole-Matarise and Timothy Heritage)