US Fed’s hike on interest rate and US dollar index change

As US Fed began to raise interest rates several times from Jun 2022, and the US CPI declined from Aug 2022, the funds have started to trade ahead of the Fed to slow down or cut interest rates. The dollar index fell in Nov 2022 to early Feb 2023. ZCE major cotton contract rose steadily step by step during this period. However, on the night of Feb 3, US Bureau of Labor Statistics revealed that the Nonfarm Payrolls rose by 517,000 in Jan, which came in much higher than the market expectation of 185,000, and US dollar index rose for three days, leading to lower commodity market, including ZCE cotton futures. We are not good at judging the late dollar index and the Fed’s action on interest rates, so a simple market description is made here.