Credit Agricole CIB Research discusses the USD outlook and and sees risk sentiment more important than rate appeal for the USD direction over the coming months.

"The recent macroeconomic developments have revived the ‘USD-smile’ as the growing Fed hike expectations boosted the rate appeal of King USD. In the near term, focus will be on the testimony of Fed Chair Jerome Powell at the US congress on 7 March as well as the February Non-farm payrolls as investors reassess the prospects for even more aggressive Fed tightening from here. That said, the fact that other central banks are tightening in tandem with the Fed could to dampen the positive impact on the currency, however," CACIB notes,. 

"We therefore see a potential deterioration in risk sentiment on the back of a renewed worsening of the global outlook as the key support for the USD in coming months," CACIB adds.