FOREX-Dollar eases a bit ahead of U.S. jobs data
* Dollar index down 0.2 pct at 75.580 .DXY
* Markets on hold ahead of U.S. payroll data
* Dollar/yen upside capped by large options at 91 yen
* Sterling up 1 pct on week after BoE
By Tamawa Desai
LONDON, Nov 6 (Reuters) - The dollar eased slightly as firm equity markets supported risk-taking sentiment, but activity was muted ahead of a U.S. jobs report expected to provide more insight into the state of the economy.
U.S. non-farm payrolls data is the last big event risk of the week after a round of central bank decisions which largely weighed on the dollar.
The U.S. jobs report, due out at 1330 GMT, is expected to show a slower pace of job losses, but another rise in the unemployment rate, traders said.
"If the payrolls number falls within expectations, risk-taking appetite is likely to re-emerge," said Lee Hardman, currency strategist at Bank of Tokyo-Mitsubishi UFJ.
"The dovish Fed statement this week has raised the bar for a positive jobs number to lead to a higher dollar," he added. "Only an extremely strong number (in the payrolls) or an extremely weak number would help the dollar."
A Reuters poll showed median 175,000 U.S. jobs were shed in October, slower than the 263,000 lost in September, with the jobless rate rising to 9.9 percent. ECONUS
"Of key symbolic significance for investors today will be the rate of unemployment, which may reach the 10 percent psychological threshold, if not this month then probably in November," said Lena Komileva, head of G7 market economics at Tullett Prebon.
By 0855 GMT, the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.2 percent at 75.580 .DXY.
The euro was flat on the day at $1.4893 EUR=.
The dollar fell after the Fed kept interest rates at record lows on Wednesday and indicated they would stay there for some time. Continued...

