Erratic moves in JGBs and dropping US yields have turned the US dollar index uptrend more erratic. Into NFP, and potentially early next week we cannot rule out the risk of a pullback, though we would view such price action as temporary. On the topside for the USD Index, our focus is also on 84.50 as a break above would suggest a positive response and resumption of the 2013 uptrend sooner than we expect. However, this would be an unlikely scenario should US 2y yields end the week below 22bp.
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Barclays