US Dollar flat as Michigan numbers see inflation uptick

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• The Greenback jumps higher as inflation is expected to pick up.
• Traders got caught by surprise as Powell delivered surprisingly hawkish remarks. 
• The US Dollar Index nearly broke above 106.00.

The US Dollar (USD) trades in the green after an uptick in inflation expectation and after surging overnight due to Federal Reserve Chairman Jerome Powell’s hawkish comments, which caught traders by surprise. The Fed’s Chairman signaled that policymakers are not scared of increasing interest rates further if needed, which goes against market consensus that the Fed is done hiking and cuts will be soon at hand. The surprise was even more bigger as earlier Atlanta Fed President Raphael Bostic and Richmond Fed President Thomas Barkin  delivered very dovish comments.