 Let's jump over to our man, Teddy Kegstad. Every Wednesday at 40 past the hour, we talk to Teddy. You can reach Teddy every trading day at forex-trading-unlock.com. Teddy Kegstad, good morning. Good morning, Tommy. We got a lot to talk about today. I bet we do, man. I was jumping around. We got to move, of course, this morning in the dollar and some action, but man, we got some moves to kick off the new year, to say the least. Where do you want to kick things off, Ted? Teddy? Okay. The dollar's definitely been under pressure for the past couple days. I would like to start with the U.S. dollar-Canada. You had a textbook head and shoulders pattern that was confirmed yesterday. You got a nice little follow-through to the downside today, and you're aiming towards a 200-day moving average. You're not too far away from that. I would be mindful of any U.S. dollar-Canada trader out there that even if we get some dollar strength, I don't think you're going to find that in the U.S. dollar-Canada. I think you have a nice short-term downtrend. Remember that it's been kind of neutral for the past couple of months trying to become a bull, and I really don't see that that's going to be able to manifest anytime soon. I think you're really going to be banging on support on that one. That's definitely a key market to look at as far as the forex market's concerned. Nice. Yeah, quite a pullback recently from almost 130 to 125, right? You get that lower 123 back there recently towards the end of last year. Right. Now, when we go back to the other currencies, it's pretty interesting. If you look at the Euro, it finally had a breakout to the upside today. The pound has been trending for already to pass basically five, six sessions. The U.S. dollar-Swiss, all in all, if you look at the Euro and the Swiss, they've basically been in a very tight range for the past three, four months. Right now, you have the Euro-U.S. dollar that is finally breaking out to the upper part of that range. I would not expect much follow-through on this move. I think you have maybe at the best, we could get up to probably around 115.25 possibly as a top for the Euro-U.S. dollar because there's a lot of nuances that I think they're going to put a drag on the Euro. Okay. Now, the British pound, obviously because of oil, I think is going to be very strong moving forward over the next couple of months. We have oil now is hit up into the $80 level in that new range. I think we'll be pushing 90s before we see it. I don't know it in the next week or two. If we get that follow-through, I would expect to see strength in the British pound, U.S. dollar continue. The Euro-U.S. dollar, like I said, I don't think that's going to be a big driver. Right now, the dollar index is very reflective of the fact that other currencies are gaining on the dollar currently in the short run. I would expect to see some divergence as far as the dollar index is concerned, probably arising after this week. You've got to remember we have a lot of economic numbers that come out today, tomorrow, and Friday. Then it's not just in the U.S. it's also in the EU and also in the UK. We already know that we have the Fed leading towards raising rates three, maybe four times this year as far as Goldman brought up recently. That's already factored into the market. The oil trade is definitely on the table there. If we don't see a pullback in oil, it doesn't matter if the interest rates do have a big significant move or not. You're going to see a big bounce again in the U.S. dollar yen. Notice how the dollar is selling off and we have a breakout in the Euro. We have a sell-off in the Swiss. We have a rally in the pound. Australian dollars making a new move high today. If you look at the U.S. dollar yen, it's not getting battered at all. It's holding up. That's because of the oil trade. No matter what interest rates are already factored in, so now definitely oil becomes a factor. I think you're going to see this divergence that as the pound, for instance, continues to be a bull moving forward as oil does at least until it gets to around the $100 to $105 level. I think once you get into that area, then you'll probably see the pound fall back as far as the oil trade and even in the yen. Until we get to those levels, I think the trend is going to keep on going. Quite the move in oil, man. This pound even quite the move from $131 to $136, just like that. Lots of green bars involve very few red bars and crude. Things got a little dicey there going back to where we were in terms of $62. You're talking about back in December 2nd. It's only January 12th. You're back to $82. We have that recent highs of $85. But now that we're above $81.82, the last six weeks, Teddy, I know you know, but it's just been constant higher prices there. $100 very natural number seems like in our head. We haven't seen it in a while. We were over that number for a long period of time, man. Seems like it might be on its way to at least the recent highs of $85 in the near future might be. If not, pushing it even higher from there. So with the CPI dead out this morning, of course, we have the dollar pulling back a little bit, putting bids in that. How do you see the inflation story playing out over the next weeks or months as that pushes into the dollar? I think it's going to explode. I think we're going to continue to go on like we did last year. I think that everything pretty much is going to double again over the course of the next year. You know, I really do. I think you're going to see it a lot in the soft commodities, in the meats. I think you're going to see it in all of the hard metals and stuff like that. A lot of the stuff that you use in production. I really think that in the tangible sense of the economy, for commodities especially, you're going to see at least 50% inflation, if not 100% inflation over the course of the next year, which then is going to factor in. Here's the thing we haven't seen a lot of inflation yet, Tommy, and that really worries me is that what happens when the service sector starts to hit with inflation? We all know that when we go to the grocery store, the gas pump, or you're buying goods that we've had it. But if you look at relative services, there hasn't been that much inflation. Well pretty soon people who are in the service industry are going to be like, well everything I do in my life, I have to pay twice for, double now. Totally. They're going to be like, why wouldn't I charge more money now? So I think that when that hits, we really are going to have a big slowdown in the economy, because it's just going to be such a drag, especially with we have an employment situation now we've never had in this country before. We have people that don't want to return to work, and then we have people that are being removed from work because of a choice. Whether you put it wherever mandate you want to put down on people, if it impacts employment, this is going to also impact inflation, supply chains. Now we're not even worried about supply chains coming globally. We're going to have our own supply chain issues within the country. And that I think is something that's going to pan out huge, and it's not going to really hit us too much over the next three months, but I think that definitely by the second and third quarter, we're going to be looking back at 2021 and being like, oh, why can't we just have that inflation? But watch out if that comes in, man, because what's so interesting too, just in light of pretty much what you're saying is that the estimates right now, we just hit 7%, but that was the estimate. So the market can trade higher when we have a CPI number that's 7% year over year. But that number is supposed to come down dramatically. So it's not hard to hit the estimates in the market to be OK when CPI is supposed to be 7% folks. But where are we going to be? And that's where I can't wait as a trader when we're coming into some of those reports, whether it's CPI, whether it's wage data that we're supposed to see and time flies, man, we're going to be there before we know it. We're supposed to see some pretty rapid decreases this coming year. Maybe we'll start getting to the section of next year that we'll have some comps that might help that out a little bit in terms of where we are. But time is coming, man, and we got to hit those numbers and we'll see what happens. Right. Well, Teddy, I appreciate the conversation as always, man. And we look forward to talking to you next week. You established 122, baby. 122. All right. I'm going to write it down. We're going to pull it up next week when we chat with you Wednesday, man. All right, take care. Thanks, man. Stay tuned, folks. We'll come right back after the break.