US dollar strength could play catch up with widening yield spreads - BTMU

Analysts at Bank of Tokyo Mitsubishi explained that Key technical resistance levels in the dollar have not been broken.

Key Quotes:

"The US dollar remains in a consolidation phase against the other major currencies in the near-term. It is a similar story as well for US yields. The highs from the turn of the year still remain in place providing strong technical resistance levels.

The US dollar’s upward momentum would likely accelerate and play catch up with widening yield spreads if the dollar index broke above the 104.00-level. Similarly, if the two year and ten-year Treasury bond yields broke above 1.3% and 2.6% respectively it could reinforce upward momentum for the US dollar."