FOREX-Dollar nurses losses after U.S. data disappoints

* Caution reigns ahead of BOJ meeting, Kuroda, Yellen comments

* Profit-taking emerges ahead of UK, US holidays

By Lisa Twaronite and Ian Chua

SYDNEY/TOKYO, May 22 (Reuters) - The dollar nursed modest losses early on Friday, after snapping three days of gains as unimpressive data prompted light profit-taking ahead of speeches by major central bankers and holidays in Britain and the United (Shenzhen: 000925.SZ - news) States.

The dollar index last traded at 95.380, below Wednesday's 2-1/2 week peak of 95.837 though still up more than 2 percent on the week and poised to end five consecutive weeks of declines.

Analysts said the index's inability to break above its 100-day moving average, currently around 95.623, was keeping a lid on the dollar.

In Asia, the Bank of Japan's policy review at the conclusion of its two-day meeting will take centre stage. The BOJ is set to maintain its massive monetary stimulus and may offer a slightly more upbeat view of the economy.

At his post-meeting news conference, Governor Haruhiko Kuroda will likely repeat that Japan will see inflation hit his 2 percent target around the first half of next fiscal year, which begins in April 2016.

On Thursday, the dollar sagged after U.S. Treasuries rose and yields declined following disappointing economic data, raising questions on whether the Federal Reserve will raise interest rates later this year.

Home resales fell in April and the strong dollar pressured manufacturing activity in May, although the labour market continued to tighten and the U.S. economy apparently remained on a modest growth track.

Fed policy-makers at their April 28-29 meeting said they would like to see further economic improvement to decide on ending their near-zero interest rate policy stand, according to minutes released on Wednesday.

The euro climbed as high as $1.1182 on Thursday, pulling away from Wednesday's three-week trough of $1.1062. It last stood at $1.1112, nearly flat on the day.

German Chancellor Angela Merkel and French President Francois Hollande met with Greek Prime Minister Alexis Tsipras for two hours late at night during an EU summit in Riga and held "friendly and constructive" talks that focused on Athens' completing its current bailout, a German government spokesman said.

"News stories around the Riga summit mostly spun an optimistic line, talking about Greece being given more time, anxious to avoid a near term default," Sean Callow, FX strategist at Westpac, wrote in a note to clients.

Investors remained wary ahead of a speech by European Central Bank President Mario Draghi, who along with a other central bankers will be addressing an ECB Forum on "Inflation and Unemployment in Europe."

Separately, Federal Reserve Chair Janet Yellen will be speaking on the U.S. economic outlook before the Greater Providence Chamber of Commerce Economic Outlook Luncheon at 1700 GMT.

Traders said those event risks, coupled with holidays on Monday, called for caution. UK and U.S. markets are shut on Monday for the Spring Bank Holiday and Memorial Day respectively. European centres such as Germany will be observing the Whit Monday holiday. (Editing by Shri Navaratnam)