At the end of last year, market was predicting FED will hike rates twice this year and the first to come as early as March. However, global financial market turmoil has been pushing hikes into the future, to the point that market started pricing no hikes in 2016. However, odds seem to be improving as equities rally and economy grew by 1% in fourth quarter.

Let's look at probabilities over next few meetings 

Current Federal funds target range is at 0.25 - 0.5%.

• March, 2016 meeting - Market is attaching 96% probability that rates will remain at 0.25-0.5%, and only 4% probability that rates will be at 0.5-0.75%
   
• April, 2016 meeting - Market is attaching 85% probability that rates will remain at 0.25-0.5%, and only 15% probability that rates will be at 0.5-0.75%
   
• June, 2016 meeting - Market is attaching 75% probability that rates will remain at 0.25-0.5%, 22% probability that rates will be at 0.5-0.75% and only 3% probability that rates will be at 0.75 -1%.
   
• July, 2016 meeting - Market is attaching 74% probability that rates will remain at 0.25-0.5%, 24% probability that rates will be at 0.5-0.75% and only 3% probability that rates will be at 0.75-1%.
   
• September, 2016 meeting - Market is attaching 60% probability that rates will remain at 0.25-0.5%, 33% probability that rates will be at 0.5-0.75%, 6% probability that the rates will be at 0.75-1% and only 1% probability that the rates will be at 1-1.25%.

Dollar could go up further if rate hike odds improve from here with equities rallying. Next focus will be on Friday's non-farm payroll data.