The dollar was not able to break higher since mid-November and is seen weakening amid lowered expectation on rate hikes.
The dollar has quietly crept below a rising channel, signalling that the price may start to weaken.
The Fed members are now feeling that the current rate is either close to neutral or has already achieved neutralisation.
The means that the pace of the rate hike will be slower than what the market has initially anticipated.
That in itself also provides an opportunity for other central banks to catch up with the Fed on interest rate and may cause the dollar to start weakening against other major currencies as a result.