[Analysis] USD trading up at mid-Dec levels and showing few signs of breaking down, despite the pause in tightening by the Fed. This is something that should worry equity bulls. When USD found its mojo in April 2018, the mood across markets darkened. One of the reasons USD’s current resilience matters is because money has flowed into EM, enticed by the wide risk premia created during 2018’s market turmoil. USD direction also holds considerable sway over the revenues generated by American multinationals . For all the growling by dollar bears after the Fed pause, where the US central bank leads, others follow. An array of central banks has since echoed the Fed by highlighting weakening economic growth and easing inflation pressures. That pretty much leaves the dollar looking like the cleanest shirt in the laundry basket. Now plenty in the dollar bear camp think a moderating US economy this year and lower Treasury bond yields will close the gap with the rest of the world...and yesterday’s US consumer inflation report for Jan suggests there's no need for the Fed to adopt a more hawkish policy outlook just yet.