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FOREX-FX volatility at Feb 2020 lows with dollar gaining slightly

    * FX volatility index falls to Feb 2020 levels
    * Euro lower ahead of ECB meeting on Thursday
    * Traders wait for policy cues before making new bets
    * Graphic: World FX rates tmsnrt.rs/2RBWI5E

 (Updates prices, adds analysts)
    By Sinéad Carew
    NEW YORK, June 8 (Reuters) - The U.S. dollar edged up slightly and currency market volatility on Tuesday
fell to its lowest level in more than a year, as investors sat on the sidelines waiting for clearer signals
on central bank policy and inflation levels.
    With an impending European Central Bank meeting on Thursday and U.S. inflation data due the same day,
and a U.S. Federal Reserve meeting next week, currencies appeared to be treading water while the S&P 500
dipped very slightly.
    Range-bound currency markets mean a fall in volatility. The Deutsche Bank Currency Volatility Index
 hit its lowest level since February 2020.
    "The reasons we're rangebound today on the dollar overall is we've a lot of option expiries in play,"
said Erik Bregar, head of FX strategy at Exchange Bank of Canada. "The big events of the week are going to
be the Bank of Canada meeting tomorrow and Thursday's session has U.S. CPI (consumer price index), ECB
meeting and a big 30-year U.S. bond auction."
    Traders on Tuesday sent longer-term U.S. Treasury yields to their lowest in more than a month after a
report showed small business owners less confident, and narrowing the spread of a closely watched part of
the yield curve.
    The U.S. dollar found a bit of support on Tuesday as investors prepared for the inflation data after
Friday's weaker-than-expected jobs data, which has eased concerns about an early tapering of the Federal
Reserve's monetary stimulus. 
    The euro fell marginally as data showed German industrial production numbers declined in April.  
    The dollar index rose 0.15% to 90.107, while the euro fell 0.13% against the greenback at $1.2174
.
    The British pound fell 0.34% to $1.4126 and the Australian dollar eased 0.25% to $0.7735
, with both stuck in ranges seen over the past couple of months.
    Cryptocurrencies dropped but trading was generally calm. Bitcoin was last down 2.99% at $32592.63
, while ether fell 5% to $2,457.78. 
    
    ========================================================
    Currency bid prices at 9:47AM (1347 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct       High Bid    Low Bid
                                              Previous                   Change                   
                                              Session                                             
 Dollar index                 90.1070        89.9880     +0.15%         0.140%        +90.1810    +89.9530
 Euro/Dollar                  $1.2174        $1.2190     -0.13%         -0.36%        +$1.2194    +$1.2165
 Dollar/Yen                   109.4550       109.2550    +0.19%         +5.94%        +109.5550   +109.2000
 Euro/Yen                     133.24         133.16      +0.06%         +4.98%        +133.3500   +133.1400
 Dollar/Swiss                 0.8968         0.8976      -0.08%         +1.37%        +0.8989     +0.8953
 Sterling/Dollar              $1.4126        $1.4177     -0.34%         +3.41%        +$1.4184    +$1.4128
 Dollar/Canadian              1.2091         1.2083      +0.07%         -5.05%        +1.2094     +1.2071
 Aussie/Dollar                $0.7735        $0.7756     -0.25%         +0.57%        +$0.7763    +$0.7734
 Euro/Swiss                   1.0916         1.0938      -0.20%         +1.01%        +1.0945     +1.0911
 Euro/Sterling                0.8617         0.8596      +0.24%         -3.58%        +0.8617     +0.8594
 NZ                           $0.7197        $0.7230     -0.45%         +0.22%        +$0.7232    +$0.7197
 Dollar/Dollar                                                                                    
 Dollar/Norway                8.2625         8.2600      -0.03%         -3.84%        +8.2810     +8.2405
 Euro/Norway                  10.0610        10.0695     -0.08%         -3.88%        +10.0798    +10.0410
 Dollar/Sweden                8.2698         8.2627      -0.04%         +0.90%        +8.2870     +8.2535
 Euro/Sweden                  10.0677        10.0715     -0.04%         -0.09%        +10.0883    +10.0586
 
    
 (Additional reporting by Tommy Wilkes in London, Editing by Robert Birsel, Will Dunham and Bernadette Baum)
  
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