Credit Agricole CIB Research discusses the USD outlook and argues that it's likely to remain the investment currency of choice in the medium-term.

"A continuing spike of UST yields could continue support the USD vs low-yielders like the EUR, JPY and CHF. At the same time, to the extent that the rise in yields does not hurt global risk sentiment, other high-yielding currencies like the AUD, CAD, NZD and NOK could attract some inflows as well,' CACIB notes. 

"This week, we expect the focus in FX markets to remain on US data, the Fed speakers and the path of UST yields. Higher UST yields will boost the appeal of the USD as an investment currency. The steady improvement of global data can further help keep risk sentiment resilient in the face of growing UST yields," CACIB adds.