• The DXY rose to 104.80 on Tuesday, past the key resistance of the 100-day SMA.
• US Treasury yields soared as January’s Core CPI came in higher than expected.
• The odds of a cut in May have fallen to 40%, according to the CME FedWatch Tool.

The US Dollar (USD) witnessed an upward thrust on Tuesday, trading at 104.80 on the Dollar Index (DXY). The Greenback was boosted by January's Consumer Price Index (CPI), which made markets delay the start of the Federal Reserve’s (Fed) easing cycle.

After Jerome Powell, the Federal Reserve Chair indicated that a cut in March was unlikely due to the bank still needing additional evidence on falling inflation, higher inflation than expected on Tuesday benefited the US Dollar as markets begin to eye June as the start of easing