Bullard was the key trigger for the turnaround in what was a wild trading session yesterday, after the release of the US consumer inflation report - which showed inflation at the highest in 40 years.
The dollar was higher on the release then tumbled heavily before reversing all of that and more into trading today.
A 50 bps rate hike for March is pretty much the base case at this stage, so we'll see how the Fed wants to play around that in the weeks ahead. As the market sees more appetite for a more aggressive Fed, the dollar is keeping in good stead today.
EUR/USD is down 0.3% to 1.1380 levels as sellers are flirting with a firmer drop below the 100-day moving average @ 1.1413. Adding to that, price action is also testing waters below its 200-hour moving average:
The key near-term level is holding up for now but that will be a notable level to watch in the sessions ahead.
Elsewhere, commodity currencies are the ones bearing the brunt of the decline with AUD/USD down 0.5% to 0.7130. The low today hit 0.7110 and neared a test of the 50.0 retracement level of the recent upswing around 0.7108:
Of note, the drop yesterday comes after the pair ran into a test of its 100-day moving average - a key level that has held any upside move since the turn of the year.
