* Dollar given a helping hand by upbeat jobs data
* Draghi says ECB ready to ease further if needed
* Flood of Chinese data due this week, starting Tuesday
By Ian Chua
SYDNEY, Dec 7 (Reuters) - The dollar got off to a subdued start on Monday, having recovered a bit of ground late last week after upbeat payrolls data bolstered the case for an imminent hike in U.S. interest rates.
To be sure, the greenback's reaction was modest with a Fed hike at the Dec. 15-16 meeting already considered highly likely. The focus has shifted to how gradual the tightening cycle will be following the initial move. urn:newsml:reuters.com:*:nL1N13T1S9
The dollar index last stood at 98.322 .DXY , having bounced 0.75 percent on Friday, partly after nonfarm payrolls rose by 211,000 last month. Figures for September and October were revised to show 35,000 more jobs than previously reported. urn:newsml:reuters.com:*:nL1N13S24J
Ray Attrill, global co-head of FX strategy at National Australia Bank, said the U.S. employment report effectively confirmed that a Fed liftoff next week is a done deal.
"The U.S. dollar was stronger across the board though the DXY failed to recoup more than about a quarter of Thursday's heavy EUR-led losses," he noted.
Indeed, the dollar index still ended last week down 1.66 percent, having slumped a massive 2.37 percent on Thursday in the face of a surge in the euro.
The euro was at $1.0878 EUR= , little changed from late New York on Friday. It was near Thursday's peak of $1.0981, having jumped from a near eight-month trough of $1.0523.
Investors were forced to unwind bearish euro positions after the European Central Bank (ECB) stopped well short of delivering the aggressive easing that the market was expecting.
ECB President Mario Draghi on Friday said he was confident the measures, which included a small deposit rate cut and an extension of its asset purchase programme, would bring inflation back to the ECB's target. He was quick to add that the bank was ready to ease policy further if needed.
Yet comments by other ECB rate setters suggested there was not enough support on the governing council for bolder action. urn:newsml:reuters.com:*:nL8N13T2RD urn:newsml:reuters.com:*:nL8N13V058
All in all, the vicious short-covering rally in the euro last week was a blow to euro bears and could discourage them from re-establishing short positions anytime soon.
Traders said the hurdle is high for anyone to take big risks with the year-end looming and activity would probably wind down sharply after next week's Fed policy review.
Against the yen, both the dollar and euro were steady. The greenback fetched 123.20 JPY= , while the euro bought 134.01 EURJPY=R . The euro had rallied nearly 3 percent on the yen last week.
This week, the focus will switch to an avalanche of Chinese data which are expected to show a sluggish economy. Trade figures are due on Tuesday, followed by inflation on Wednesday and industrial output and retail sales on Saturday. urn:newsml:reuters.com:*:nL3N13S2Y8