The European Central Bank is widely expected to hike rates this Thursday. Cyclical support for the dollar may be starting to soften a little bit.

The market's really just looking at the Fed, the Fed, the Fed.

Short-term positions have been squared up a bit ... but now is not the time for a sustained yen rally.

It doesn't really tell us a lot about where we are heading in the first quarter. We doubt this will have much of an impact and once we focus again on recent data, the dollar will probably climb a bit higher.

Now, you've got investors who believe they want to have a core short-dollar position in place.

It's not a dramatic change to Fed expectations -- we've seen yields up a couple of basis points since the (data) -- but it's back toward the upside and that's dollar-supportive.

The market had bought quite a few dollars back in the last few days and it didn't find a solid reason to continue that process.

Some of the recent data we have been getting is decidedly more upbeat. The market looks at this as interesting history, likely to be revised up in future months.

Future Fed tightening is already discounted in the dollar.