Despite the US dollar’s sell-off seen on Friday, the greenback remains a ‘buy on dip’ for trading, in the face of the hawkish Fed outlook, analysts at ING bank noted.

Key quotes

“It was a little surprising to see the dollar generally lower on Friday. “

Interest rate markets priced a more hawkish Fed on the back of the December jobs data, yet the dollar still fell.”

“This week's release of US December CPI should add more ammunition to the hawkish Fed story and we would expect the dollar to play its role in tightening US monetary conditions.”