The US Dollar Index gathered bullish momentum early Thursday and started to push higher toward multi-decade tops above 108.50. The next target aligns at the 111 area, economists at Westpac reprot.

Yield spreads could boost the USD to fresh 20-year highs

“A clear break above 108 would technically signal a move to 111.”

“Yield spreads have been a major source of support for the USD during the past 18 months. With the ECB likely to deliver an underwhelming 25 bps next week, the DXY index is set to make a fresh 20-year high.”