Where next for the US dollar?

The Jackson Hole Symposium has been the most telegraphed date for when the Fed is supposed to tell the markets their plans for tapering their asset purchases. This will most likely start with a reduction in Mortgage-Backed Securities before moving on to Treasuries. What that means for the US dollar depends on how the market perceives the policy moves, as we have seen a Taper Tantrum in the past and we could get another. Looking at the recent relationship with the 10-year breakevens, the likelihood of the US dollar going down as yields go higher is a high probability long term trade, but currently, the long term yield curves are showing weakness and the US dollar has been rising. 

For more trading details, please check the hyperlinks with time stamp indicated from the video:

1:53 US DOLLAR INDEX

7:31 EUR/USD