FX.co ★ DXY Rises After Inflation Print

The US dollar index rose 0.3% to around 102 on Tuesday after stronger-than-expected inflation data reinforced expectations that the Federal Reserve will continue raising interest rates. Consumer prices increased 0.4% in October, exceeding the market forecast of a 0.3% gain, while core CPI advanced 0.3% for a third consecutive month, also above expectations for a 0.2% rise. In response, money markets increased wagers 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 was unable to provide annual comparisons because data collection had been disrupted by last year’s government shutdown. At the same time, traders raised the odds of a potential de-escalation in the Middle East after President Donald Trump indicated that further strikes on Iran might not be necessary, though he stressed that the US remained “locked and loaded.”