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FOREX-Dollar on backfoot against euro after U.S. jobs report

 (Revises throughout, updates prices, market activity and comments, adds byline, NEW YORK
dateline)
    * Euro up 0.6%
    * Dollar index down 0.5%
    * Jobs report stops dollar run
    * Year-to-date dollar index up 1.3%

    By David Henry and Ritvik Carvalho
    NEW YORK/LONDON, Feb 5 (Reuters) - The dollar lost out to the euro after Friday's U.S. jobs
report suggested that some traders may have over-egged a stronger American recovery from the
coronavirus pandemic.
    The euro rose 0.6% against the dollar, its biggest daily gain in two weeks after
the report, which Marc Chandler, strategist at Bannockburn Global Forex, said did more to force
short-term traders to adjust long-dollar and short-euro positions than it changed the economic
outlook for a U.S. recovery that is stronger than peers. 
    The dollar index of a basket of currencies was down 0.4%, but still holding a weekly
gain of 0.7%. 
    "This forces some of the late dollar-longs out," Chandler said. "It doesn't really change
what to expect for Q1 GDP in the U.S. Market positioning is a different story."
    The report showed U.S. employment growth rebounded less than expected in January and job
losses the prior month were deeper than initially thought, strengthening the argument for
additional relief money to aid the recovery from the COVID-19 pandemic.
    The greenback was off 0.1% against the yen at 105.43.
    The slight change against the yen, Chandler said, was consistent with yields on U.S.
Treasuries initially changing little in reaction to the report and the support it gives for
additional government stimulus spending.
    Analysts and investors have been weighing whether dollar strength this year has been a
temporary reaction to a 7% loss in 2020 or is a longer-lasting shift away from dollar pessimism.
    The dollar index is still up 1.3% this year. Its rise has been supported by higher
longer-term U.S. Treasury yields, which prompted traders to position for massive fiscal
spending.        
    The gauge rose in each of the first four days this week and before the jobs report was on
track for a 1.1% weekly advance, the most since Nov. 1.
    ========================================================
    Currency bid prices at 10:17AM (1517 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct       High Bid    Low Bid
                                              Previous                   Change                   
                                              Session                                             
 Dollar index                 91.1290        91.5270     -0.43%         1.276%        +91.6000    +91.0820
 Euro/Dollar                  $1.2025        $1.1961     +0.54%         -1.58%        +$1.2033    +$1.1952
 Dollar/Yen                   105.4200       105.5400    -0.10%         +2.07%        +105.7600   +105.3350
 Euro/Yen                     126.77         126.25      +0.41%         -0.12%        +126.9400   +126.1700
 Dollar/Swiss                 0.9003         0.9044      -0.44%         +1.77%        +0.9045     +0.8999
 Sterling/Dollar              $1.3731        $1.3673     +0.43%         +0.51%        +$1.3736    +$1.3666
 Dollar/Canadian              1.2782         1.2824      -0.32%         +0.38%        +1.2832     +1.2780
 Aussie/Dollar                $0.7646        $0.7601     +0.61%         -0.59%        +$0.7655    +$0.7583
 Euro/Swiss                   1.0826         1.0816      +0.09%         +0.18%        +1.0833     +1.0808
 Euro/Sterling                0.8754         0.8749      +0.06%         -2.05%        +0.8764     +0.8739
 NZ                           $0.7191        $0.7157     +0.48%         +0.14%        +$0.7195    +$0.7136
 Dollar/Dollar                                                                                    
 Dollar/Norway                8.5525         8.6420      -1.08%         -0.44%        +8.6445     +8.5425
 Euro/Norway                  10.2869        10.3350     -0.47%         -1.72%        +10.3435    +10.2620
 Dollar/Sweden                8.3986         8.4627      -0.20%         +2.47%        +8.4816     +8.3879
 Euro/Sweden                  10.0970        10.1170     -0.20%         +0.20%        +10.1410    +10.0890
 
    
 (Reporting by David Henry in New York and Ritvik Carvalho in London; Additional reporting by
Kevin Buckland in Tokyo; Editing by Larry King and Alexander Smith)
  
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