FOREX-Dollar dips as Treasury yields subdued

    * Dollar index edges down
    * U.S. CPI and ECB meeting on Thursday in focus
    * Graphic: World FX rates

 (Adds quote, updates prices)
    By Sinéad Carew and Karen Brettell
    NEW YORK, June 7 (Reuters) - The dollar edged lower on
Monday as Treasury yields were moribund and investors looked
ahead to European and U.S. central bank meetings. 
    Friday's U.S. jobs data had put pressure on the dollar as
investors bet that jobs growth was not strong enough to raise
expectations for the U.S. Federal Reserve to tighten its
monetary policy.
    That move continued on Monday, with Treasury yields
remaining subdued after Friday's drop, reducing demand for the
U.S. currency.
    "Treasury yields edged slightly higher on the session,
though remained well below levels seen before the employment
report. This was the likely driver of USD weakness on Monday,"
said Ronald Simpson, managing director, global currency analysis
at Action Economics.
    The dollar index was down 0.21% at 89.946 while the
euro gained 0.23% to $1.2194. The dollar also fell
0.23% to 109.26 Japanese yen.
    Benchmark 10-year Treasury yields were last at
1.569%. They fell to 1.560%, from 1.628%, on Friday.
    "At this point it looks like the market really wants to be
short dollars. To us it suggests there's a risk chasing this
move. It's a crowded position. You've already got a sizeable
chunk of the market that's net short U.S. dollars so if feels
like we need a shakeout of those positions," said Bipan Rai,
North America head of FX strategy at CIBC Capital Markets.
    While Rai said there was "some risk the dollar will rally"
he noted that investors are waiting for Federal Reserve's
meeting next week. 
    Market participants will also be looking at 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
    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.

    Currency investors seemed to shrug off news that 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.

    "It was expected they'd come to some kind of agreement,"
said CIBC's Rai, but he said investors were likely wary of
making bets as "The road is long and has lots of risks."
    The Australian dollar, which is seen as a proxy for risk
appetite, was up 0.22% versus the U.S. dollar at 0.776.
    In cryptocurrencies, bitcoin fell 0.83% to $35,507
, while ether dipped 0.61% to $2,693. 

    Currency bid prices at 3:00PM (1900 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct       High Bid    Low Bid
                                              Previous                   Change                   
 Dollar index                 89.9460        90.1420     -0.21%         -0.039%       +90.3020    +89.9120
 Euro/Dollar                  $1.2194        $1.2167     +0.23%         -0.19%        +$1.2202    +$1.2145
 Dollar/Yen                   109.2550       109.5100    -0.23%         +5.78%        +109.6300   +109.1950
 Euro/Yen                     133.23         133.26      -0.02%         +4.97%        +133.3800   +132.8900
 Dollar/Swiss                 0.8971         0.8991      -0.23%         +1.39%        +0.9010     +0.8969
 Sterling/Dollar              $1.4183        $1.4164     +0.15%         +3.83%        +$1.4191    +$1.4112
 Dollar/Canadian              1.2071         1.2074      -0.02%         -5.20%        +1.2106     +1.2058
 Aussie/Dollar                $0.7759        $0.7742     +0.22%         +0.86%        +$0.7765    +$0.7727
 Euro/Swiss                   1.0939         1.0938      +0.01%         +1.22%        +1.0948     +1.0931
 Euro/Sterling                0.8596         0.8590      +0.07%         -3.82%        +0.8612     +0.8579
 NZ                           $0.7233        $0.7212     +0.31%         +0.73%        +$0.7242    +$0.7194
 Dollar/Norway                8.2585         8.3030      -0.49%         -3.78%        +8.3260     +8.2560
 Euro/Norway                  10.0728        10.1020     -0.29%         -3.77%        +10.1158    +10.0420
 Dollar/Sweden                8.2601         8.2613      +0.11%         +0.78%        +8.2943     +8.2578
 Euro/Sweden                  10.0740        10.0634     +0.11%         -0.02%        +10.0905    +10.0470

 (Reporting by Sinead Carew and Karen Brettell, Editing by Angus