This morning´s bull run in USD pairs continues as I speak and it´s still extending the range for the day. USD/JPY just broke above 114, although has dipped back below now, while EUR/USD is approaching 1.05. 

Some of this has to do with Donald Trump´s comments yesterday, who said that his administration will spend $1 trillion in infrastructure. 

But, the comments from FED´s members are also playing a big part on this. Dudley really pushed for three interest rate hikes this year and from how he said it I got the feeling that March is definitely on the table. 

Rate hike odds for March have now jumped to 82%. So a March hike is almost a sure thing and that´s not a small thing for the Buck in my opinion.

The US inflation report might have increased the optimism to the USD buyers because the monthly CPI (consumer price index) number came out higher than expected, while the yearly number was a tick down. Whatever it was, it´s dangerous to go against the USD now. Perhaps, the 1.05 level might provide an opportunity for a small scalp.