Via Reuters polling of analyst expectations for the USD, the highlights:

  • 46 of 54 analysts said US Treasury yields will give the dollar the most direction over the next 12 months
  • 29 of 48 analysts said the dollar's strength was not at an inflection point against other currencies

Reuters also report some of the remarks received, this via Tai Hui, chief Asia market strategist at JP Morgan Asset Management:

  • "The market in the near term is going to focus on the fact that we expect U.S. Treasury yields to keep rising on the back of the Fed's tapering of QE and also the ongoing recovery in the U.S. economy"
  • "Treasury yields are not going to rise indefinitely. At some point they're going to stabilize and I think that's when the dollar is going to face a bit more downward pressure and that's why we are still expecting the dollar to get weaker."