Credit Agricole CIB Research maintains a bullish bias on the USD in the near-term.

"Recent client discussions have signalled that a growing number of FX investors have been turning bullish on the USD. Our positioning data has further suggested that the USD - already the biggest long in the FX market - has continued to attract buying interest in recent days. In that, most market participants agree that the recent USD gains are very consistent with the predictions of the "USD-smile" market template that links USD outperformance with (1) higher US rates; and (2) spikes in risk aversion," CACIB notes.

"In particular, the Fed's hawkish hold in June has triggered tightening of global financial conditions that, in turn, has fuelled global risk aversion. The high-yielding, safe-haven King USD should continue to smile in the near term, as a result," CACIB adds.