US Dollar Faces 'Sell the Rip' Mode as Expectations Build for Rate Hike

The US dollar has had a red week despite building expectations for a rate hike from the Fed and even a second hike by the end of the year.

CPI came in right at the expected 3.4% for headline and 2.4% for core, but inflation expectations in the U of M survey showed widespread expectation for prices to continue moving higher.

The ECB hiked rates yet EUR/USD sets up a doji on the weekly, further highlighting how the crowded USD/JPY carry trade is likely playing a larger role in DXY dynamics.

A 'sell the rip' mode could be attractive particularly if we see the Fed invoke a breakout by taking a hawkish stance around a rate hike next week.