Federal Reserve Governor Christopher Waller crossed the wires and said Friday's inflation report was "just one data point," and that markets are "way out in front". This is a theme that is gathering pace in the open as per the following article: 

• US Dollar bulls could start to emerge in the opening sessions

Key quotes

• Will need to see a run of CPI reports to take a foot off the brake.    
• Positive that goods prices came down with some moderation in services, but it needs to continue.
• Fed caught "flatfooted" in 2021 when inflation seemed to moderate then "exploded".    
•  7.7% cpi inflation is "enormous," fed still has a long way to go, rates will stay high for a while. 
• Rates will not fall until there is "clear, strong evidence" inflation is falling.    
• Starting to see a little softening in the labor market, but the "shocking part" is that strength that remains after rate increases.   
• "Critical" that u.s. gets inflation down and "fairly quickly" if possible.    
• So far inflation expectations a couple years out seem to be holding.    
• US policy rate is "not that high" given level of inflation.;    
• Rate hikes so far has not "broken anything    
• The US housing market needed to slow down.    
• US housing markets "will be okay".
• US household balance sheets remain in good shape.   
• Was always going to be a communications challenge to signal slowdown in the pace of hikes, fed "is not softening".    
• Signal was to pay attention to the endpoint not the pace of rate increases, and until inflation slows the endpoint is "a ways out".  
• Fed keeping an eye on the balance sheet, don't want to "crush" holdings in a way that will cause problems in markets    
• A "benchmark" target may be about 8 to 10 percent of GDP.

US Dollar technical analysis

From a 1-hour perspective the bulls will be on the look out for whether there can be a break in the near-term resistance around 106.90.