Yellen says a hike is coming if outlook unfolds as she expects

The US dollar jumped across the board after Fed Chairman Janet Yellen hinted at a rate cut 'in the coming months'.

She spoke in a round-about way but her meaning was clear.

She said the economy was slow in Q42015 and the first quarter of this year but that it was picking up and if it continues to pick up as she expects it will, then it will be appropriate to hike rates 'in the coming months'.

This is hawkish. The market is only priced for a 74.4% chance of a hike by year end. Yellen isn't setting a high bar for a hike, and I don't think it's coming in June but it's increasingly likely that it will happen in July or September -- at least until the market starts kicking and screaming.