Potential for some moderate renewed strength for the Dollar – MUFG

Short-term outlook is favourable for the US Dollar, according to economists at MUFG Bank.

Higher US yields and diminished risk appetite to help Dollar

The failure of yields to decline in the wake of the US CPI report last Thursday has underlined the solid support for US yields that looks set to persist over the short-term. 

If there is a source of renewed volatility and risk aversion over the short-term it looks like that could come from China. Economic data continues to be weak with increased concerns of late over the property market.