Flash: If US 10 year yields break above 2%, USD will follow – Societe Generale

FXstreet.com (Barcelona) - According to Societe Generale analyst Alvin T. Tan, direction of the US 10 year yield is key for the USD index. “For the short term direction of USD, keep a close eye on US yields,” the analyst suggests.

In his view, the “10 yr Treasury yield is showing a higher low and higher high technical profile since July 2012,” Alvin notes, pointing out that if in case this yield broke above the 2% level “convincingly,” he says, “the dollar will follow,” Mr. Tan concludes.