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DJ Dollar May Rise on Higher Yields After Data, But Not For Long -- Market Talk

· 02/05/2021 07:51

1251 GMT - The dollar may rise in tandem with U.S. Treasury yields if data Friday show strong U.S. jobs growth in January. but the currency's gains should prove temporary, Societe Generale says. Another jump in yields could lead to a further dollar short squeeze where investors are compelled to close earlier bets on the currency falling after sharp appreciation, SocGen currency strategist Kit Juckes says. While 10-year Treasury yields push higher, Treasury Inflation-Protected Securities are marking time, he says. "That's one reason I think the medium-term dollar outlook remains negative, regardless of the U.S.'s strong economic performance." The dollar index drops 0.1% to 91.4320. January's U.S. non-farm payrolls report is due at 1330 GMT. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

February 05, 2021 07:51 ET (12:51 GMT)

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