The market remains bullish dollars, ... It's looking to take the dollar to new highs for the year. The overwhelming theme is Fed monetary policy.

There is an underlying positive tone for the dollar which is coming through between the politics of Japan and Germany. The underlying dollar story is interest rates. People are becoming a little more convinced the Fed is going to hike to 4 percent by the end of the year.

Just like a pendulum, ... the current-account theme is back in the market.

The Fed is going to continue to tighten and that will ultimately push the dollar higher. The market hasn't built in enough of that.