FOREX-Euro steadies, eyes on central banks next week

* Euro finds some support at $1.0600, but still under a cloud

* Market wary given expectations of ECB easing next week

* Yen shrugs off Japanese economic data

* U.S (Other OTC: UBGXF - news) . trading to end early on Friday after Thanksgiving

By Patrick Graham

LONDON, Nov 27 (Reuters) - The euro held its ground above $1.06 on Friday, resisting pressure ahead of expected further cuts in euro zone interest rates next week in a session thinned out by the Thanksgiving weekend holiday in the United States.

The European Central Bank is considering options including whether to stagger charges on banks hoarding cash, Reuters reported this week, as part of a new push to support growth that it may announce next Thursday.

The euro has dipped below $1.06 per dollar twice this week, and the overwhelming consensus in the market in favour of a stronger dollar points to more weakness.

Yet there has been little sign of strong new speculative bets against the single currency since strong U.S. jobs data three weeks ago.

"If you look at today and yesterday it seems that ECB action is priced in," said Lutz Karpowitz, senior currency strategist with Commerzbank (Xetra: CBK100 - news) in Frankfurt.

"We think they will extend asset purchases and lower interest rates, but the most important thing is that they signal there is more to come. It (Other OTC: ITGL - news) is difficult to see the data between now and next Thursday moving the market much."

The euro last stood at $1.0612, almost unchanged on the day. The dollar index was steady at 99.818, not far from an 8-1/2 month peak of 100.170 scaled on Wednesday.

Against the yen, the dollar was down 0.2 percent at 122.41, pulling back from a three-month high of 123.77 hit on Nov. 18, and only just above this week's low of 122.26.

That came even after Japanese data showing household spending slumped in October and core consumer prices fell for the third straight month, albeit mostly due to falling energy costs. On a brighter note, Japan's jobless rate fell to its lowest since July 1995.

"Forex doesn't respond much to Japanese releases, but the overall sentiment is quite solid. There's a base forming," said Bart Wakabayashi, head of foreign exchange for State Street Global Markets in Tokyo.

But he added: "Household spending was bad, which is always a concern."

Japanese Economics Minister Akira Amari told reporters the unexpected fall in household spending shows some consumers still lack confidence in the economy.

Tokyo will stick to its target of halving the primary budget deficit in fiscal 2015 when it compiles an extra budget for economic stimulus, he said.

The yuan was again fixed weaker by Chinese authorities and offshore rates fell ahead of the International Monetary Fund's decision next Monday on whether to include the currency in its $280 billion basket of reserves.

Some fund investors expect the yuan, or renminbi, to weaken in the aftermath of its inclusion in the basket. But opinion among dealers in London is divided, some judging China will seek to hold the currency relatively steady after turbulence around a one-off devaluation in August. (Additional reporting by Ian Chua; Editing by Hugh Lawson)