US Dollar Spikes as Fed Expected to Turn Hawkish Following Key Data

The USD is trading higher, about we have been warning for the whole of January as we saw the market coming higher into a corrective phase (click here). Also, this view was then supported by strong NFP and higher US inflation CPI report last week, so the market has to do a repricing as speculators maybe went too far with their expectation of cuts from the FED for this year. Well, dx is coming higher nicely, but in C wave of a corrective recovery so keep in mind that still later this month we may see a new reversal lower. But of course, we will have to be careful and patient before calling any new top for the USD index. Resistance is at 104.
Grega

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