* Yen edges higher as BOJ begins two-day policy meeting
* Dollar nurses modest losses as jobs report disappoints
* Euro also cautious on ECB stimulus speculation
By Lisa Twaronite and Ian Chua
TOKYO/SYDNEY, April 7 The yen rose against its
major counterparts in relatively thin trading in Asia on Monday,
with moves limited by caution as the Bank of Japan began its
two-day policy meeting.
The greenback remained under pressure after Friday's U.S.
nonfarm payrolls report fell short of high expectations, while
the euro had problems of its own from speculation the European
Central Bank could launch its own bond-buying stimulus
"There's some consolidation, given it's a Chinese holiday so
liquidity is thinner, and directional leads are lacking," said
Sue Trinh, currency strategist at RBC Capital Markets.
"Not much is expected from the BOJ, though never say never,"
BOJ Governor Haruhiko Kuroda might come under pressure to
take more easing action to support the economy after Japan hiked
its sales tax this month.
However, data scheduled for early Tuesday is expected to
show Japan's current account balance probably swung back to a
surplus for the first time in five months in February, helped by
overseas investment returns and slowing import growth.
U.S. nonfarm payrolls data last Friday showed 192,000 jobs
were generated last month, below analysts' median forecast and
well short of the so-called "whisper" numbers that made the
usual rounds in the markets, traders said.
Investors were forced to trim bullish positions as a result,
knocking the dollar index off Friday's seven-week peak of
80.599. It last stood at 80.432, little changed from where it
closed in New York.
Traders said the dollar's dip was a reflection of market
positioning rather than any true weakness in payrolls.
Indeed, the report showed "solid job growth and suggests
that the negative weather effects of the winter are largely
over," analysts at Barclays Capital wrote in a note to clients.
Speculative positions as seen in the latest IMM data through
April 1 still favoured the greenback, with speculators raising
their bullish bets on the U.S. dollar in the latest week. Net
dollar-long positions rose for the first time in two months,
according to the latest data from the Commodity Futures Trading
Commission released on Friday.
The greenback recoiled from Friday's 2-1/2 month high of
104.13 yen to last stand at 103.14, down about 0.2
percent on the day.
However, the dollar only slightly underperformed the euro,
which came under pressure after a newspaper report added weight
to possible bond-buying stimulus from the ECB.
German newspaper Frankfurter Allgemeine Zeitung said the ECB
had modelled the effects of buying a trillion euros of assets to
ward off deflation, a day after the head of the ECB said radical
policy action might be needed.
The common currency fell about 0.2 percent to a one-week low
of 141.24 yen. Against the dollar, it stood at $1.3697
, having edged off Friday's five-week trough of $1.3672.
(Editing by Shri Navaratnam and Eric Meijer)