UOB Bank stated that in the absence of catalysts to trigger a reversal, the current theme of a strong US dollar and arbitrage operations may continue to further extend. "As other G10 central banks cut interest rates before the Fed takes action in September, the expanded interest rate differential may further support the US dollar," said Chidu Narayanan, the bank's chief Asia-Pacific strategist based in Singapore. Narayanan added that next week's CPI inflation data will be key, and given the absence of overall economic recession risks, he still sees short-term arbitrage prospects and expects further upside potential for USD/JPY.