The US dollar is enjoying some bullishness at the beginning of a brand new trading week, reversing its losses from the previous session as traders look forward to the upcoming CPI report providing more reinforcement for the Fed to announce a rate hike soon. At the time of writing, the US dollar index DXY is trading around 95.90.

The greenback was dealt a shock on Friday when the non-farm payrolls report revealed an addition of only 199k jobs to the US economy though December, even lower than November’s figure of 210k. The figure was far lower than economists’ forecast for a reading of +400k instead. Markets took the news especially badly as the ADP private payrolls report released earlier in the week had shown a sharp rise in jobs in the private sector, boosting expectations for a stronger than expected performance.

However, the mood has reversed as traders look forward to consumer prices data coming out this week which could reveal higher inflation than the Fed’s target and convince officials towards announcing a rate hike possibly within this quarter itself. Economists have forecast a reading of 7% YoY in the headline CPI, well above the Fed’s target of around 2%.

The bullish moves in the US dollar are also supported as markets await comments from Fed chair Jerome Powell and governor Lael Brainard this week. Both officials are due to testify before Senate committees and could offer some hawkish clues on the plans the central bank has for supporting the US economy in the coming months.

Meanwhile, the safe haven appeal of the dollar is also enjoying some bids over talks between the US and Russia about tensions building up in Ukraine. Geopolitical tensions are keeping the greenback in favor among investors over the possibility of an armed conflict in Europe.