Is the greenback's light still a, 'green go-buy-it light?' - Rabobank

Analysts at Rabobank explained that with yields consolidating (in fact the US 10 year yield has come in from a high of 2.42% to 2.36%), the USD showed a similar move on Friday. 

Key Quotes:

"Such consolidation doesn’t provide any clarity on whether the global liquidity cycle has come to an end – and the same for the USD. 

Rather, it’s symptomatic of wider considerations. The move to date has been aggressive and it’s natural to stop for a breath as a less favourable technical picture kicks in. One can’t have unfettered lifts in interest rates and not expect some fallout given the build-up in leverage; no one knows where that tipping point is, although eyes are turned to emerging markets in terms of the fallout. 

A firmer USD is one factor tightening US financial conditions at present and hence future growth prospects. So markets invariably pause for a breath and look for the next catalyst. Expect attention to turn back towards the Fed (Yellen) and jobs data on whether the light is still green to buy USD."