The dollar is on the rise after US inflation data out on Friday showed core inflation rose 0.3% in April, more than the 0.2% expected.  Saxo Bank’s John Hardy says the reaction to the US CPI data highlights how sensitive markets are as they look for a sense of direction for the dollar.

He says traders are uncertain about when the US Federal Reserve may decide to hike interest rates, which is making the markets particular sensitive to incoming data. The reaction to the US CPI data indicates just how sensitive, Hardy says.