He is going to dance around the weeds a little bit, calling for the Fed to be data-dependent.

But clearly any view on the Fed now is dependent on how the data comes through and hence we can expect the dollar to be a bit more volatile on data releases, starting with Friday's payrolls.

The Fed is in data-dependent mode, and we've gotten a string of data that shows a lot of strength.

It's going to make the markets a bit jittery, especially when the market is conditioned to be data-dependent.

The Fed has been on 'autopilot' with its monetary tightening so that even bouts of weaker data, such as we saw after hurricane Katrina, failed to divert the Fed off course. But now, following the minutes of the December meeting, it is clear that policy will become more data dependent.

The market had gotten oversold.