How much support are US yields giving to the greenback?- Scotiabank

 Rising US yields are providing the USD with some support, the question is how much? 

Key Quotes:

"Short, medium and long-term spread correlations are rising but are not as strong as they were in H1 still and the EUR has not been particularly strongly influenced by Euro-US 2Y spreads in recent weeks."

"Nevertheless, markets will note the Fed’s conviction and contrast that with the ECB’s vacillating thoughts on tapering unless ECB speaking engagements in the next few days firms up ECB messaging to reflect the market’s perception of improving Eurozone growth momentum."

"EUR did close softly yesterday (bearish outside range) so technical signals may remain neutral directionally until the market makes progress above 1.20 or below 1.18."