In the view of analysts at TD Securities, there is likely potential for USD consolidation in the first quarter of the year.

Scope for a bit of USD consolidation in the weeks ahead

“Earnings, global data surprises, and a bumpy China reopening could stall the Goldilocks optimism in the weeks ahead.”

“The next month provides a nice window for the USD to consolidate. It screens at an extreme discount on a host of measures, though we think any rallies will be shallow, brief, and short-lived.”