* Dollar edges up against euro, yen
* This week's Fed and BOJ policy meetings awaited for cues
* Pound wobbly after weak U.K. business activity readings
By Shinichi Saoshiro
TOKYO, July 25 (Reuters) - The dollar was buoyant against the euro and yen early on Monday as a prevailing risk-on mood continued to support the U.S. currency and assets.
Upbeat U.S. business activity data out on Friday also added to prospects of a near-term Federal Reserve interest rate hike and supported the greenback.
The euro was down 0.1 percent at $1.0969 EUR= after slipping to a one-month low of $1.0955 on Friday in the wake of shootings that took place on Friday in Munich.
Against the safe-haven yen the dollar was up 0.1 percent at 106.30 JPY= , having recovered from a dip below the 106 threshold after Wall Street shares resumed their advance.
The yen has been on the defensive amid hopes that the Bank of Japan would further ease monetary policy at its July 28-29 policy meeting.
While the BOJ has effectively dashed hopes that it would adopt unorthodox "helicopter money" stimulus methods, the market has still maintained its expectations that the central bank would ease in one form or the other.
"At this point it is hard to tell how much the yen would weaken even if the BOJ were to ease. It is widely expected to ease through its ETF-purchasing program and that won't have much of a yen-weakening effect," said Masafumi Yamamoto, chief forex strategist at Mizuho Securities in Tokyo.
The ongoing boon for risk assets is a key factor supporting the dollar and weakening the yen, but the headwinds commodity markets are beginning to face could reverse that trend, Yamamoto said.
Central bank meetings will be the focus of market attention this week, with the Fed also holding a policy conclave on July 26-27.
While the Fed is widely expected to stand pat on monetary policy, investors will be sifting through its statements for the merest hint of a near-term rate increase.
The Australian dollar edged up 0.1 percent to $0.7474 AUD=D4 . Sterling crawled up 0.1 percent to $1.3124 GBP=D4 after falling roughly 1 percent on Friday after surveys showed business activity had wilted after the Brexit vote.