USD is a touch firmer, alongside higher UST yields. Economists at OCBC Bank analyze Greenback’s outlook.

Potential for USD bull exhaustion after 11 consecutive weeks of rise

Same old story of rates potentially going higher for longer, relative US growth resilience and hawkish Fed are factors that continue to underpin support for the USD, until US data starts to show more material signs of softening. 

Last Friday's price action somewhat nullified the potential corrective pullback that markets were looking for. Nevertheless, we continue to keep in view the potential for USD bull exhaustion after 11 consecutive weeks of rise.

Support at 106, 105.40 (21-DMA). If these levels break, the next support is at 104.10 (38.2% fibo retracement of Jul low to Sep high). Resistance at 106.90 (2023 high), 107.20 levels.