* 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 By Tamawa Desai LONDON, Nov 6 (Reuters) - The dollar eased slightly as expectations data due later on Friday would show U.S. firms shedding fewer jobs boosted risk sentiment. Activity in the market was muted ahead of the U.S. non-farm payrolls data -- the last big event risk of the week after a round of central bank decisions which broadly weighed on the dollar. The U.S. jobs report, due at 1330 GMT, is expected to show a slower pace of job losses, but another rise in the unemployment rate, according to analysts polled by Reuters. "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. Increased risk appetite tends to dim the allure of the safe-haven but low yielding dollar. "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 a 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 1024 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 75.605 .DXY. The dollar fell after the Fed kept interest rates at record lows on Wednesday and indicated they would stay there for some time. It lost further ground on Thursday after European Central Bank President Jean-Claude Trichet sounded an optimistic note about a 2010 recovery and hinted at a slow-motion exit strategy for some emergency stimulus measures. The ECB kept rates steady as expected. The euro was flat on the day at $1.4893 EUR=, above key resistance around $1.4860, around where its 14- and 21-day moving averages lay. Technical analysts at Societe Generale said a close above that level was needed to push the single currency above a 14-month high around $1.5060 hit last week. Sterling was supported after the Bank of England on Thursday expanded its asset-purchase programme by 25 billion pounds on Thursday and suggested the scheme may be coming to an end. The dollar was slightly weaker against the yen at 90.55 yen JPY=, with the upside capped by a large amount of options with a strike price of 91.00 yen set to expire later in the day. Some traders said the yen may come under pressure after the U.S. jobs data on growing concerns about Japan sovereign risk, reflected in a blowout in the price of insuring debt.

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