US Dollar (USD) net long positions have increased for the fifth consecutive week, driven by a decrease in short positions, Rabobank's FX analysts jane Foley and Molly Schwartz note.

Market is pricing in a no-change Fed decision

"USD net short positions are at their highest level since September 2024, though profit-taking has now been evident in the spot market."

"US CPI inflation registered in line with expectations at 0.4% m/m in the headline, but a slightly cooler core CPI print at 0.2% m/m drove a 12.5bp drop in the 10yr, which has only grinded lower since. The market is pricing in a no-change decision for the January 29th Fed meeting."