DXY Rises After Inflation Print
The US dollar index rose 0.3% to around 102 on Tuesday as stronger-than-expected inflation data reinforced expectations that the Federal Reserve will continue raising interest rates. Consumer prices increased 0.4% in October, while core CPI advanced 0.3% for a third consecutive month. Money markets increased bets on at least two additional rate hikes by mid-2027, with investors anticipating another increase at the Fed’s December 8-9 meeting. The BLS could not provide annual comparisons because data collection was disrupted by last year’s government shutdown. Meanwhile, traders also raised expectations for a potential de-escalation in the Middle East after President Donald Trump said further strikes on Iran might not be necessary, although he maintained that the US remained “locked and loaded.”
The US dollar index rose 0.3% to around 102 on Tuesday as stronger-than-expected inflation data reinforced expectations that the Federal Reserve will continue raising interest rates. Consumer prices increased 0.4% in October, while core CPI advanced 0.3% for a third consecutive month. Money markets increased bets on at least two additional rate hikes by mid-2027, with investors anticipating another increase at the Fed’s December 8-9 meeting. The BLS could not provide annual comparisons because data collection was disrupted by last year’s government shutdown.
Meanwhile, traders also raised expectations for a potential de-escalation in the Middle East after President Donald Trump said further strikes on Iran might not be necessary, although he maintained that the US remained “locked and loaded.”