On Wednesday, the consumer price index rose 0.3% last month, same as the expectation of 0.3%, also marking the largest gain since April. The U.S dollar strengthened after CPI data came in line with forecasts, U.S dollar index rising 0.23% to close at 106.62.
(U.S Dollar Index Chart, Source: Trading View)
While inflation remains elevated, there are some positive signs. Rents, a typically stubborn component of inflation, increased at the slowest pace in nearly three and a half years. Additionally, the rise in motor vehicle insurance costs, another problematic category, slowed down. These factors contributed to a slower increase in services inflation. A sustained cooling trend in inflation would be positive, although potential tariffs from the incoming administration could pose risks.
The CPI data has reinforced market expectations of a Federal Reserve interest rate cut next week. The probability of a quarter-point rate cut on December 18th has climbed to over 94%, according to CME’s FedWatch tool. The market is highly confident that the Fed will follow through with the rate cut, as it’s rare for the central bank to deviate from such strong market expectations.
Disclaimer
Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.
隨時隨地留意市場動態
市場易受供求關系變化的影響
對關注價格波動的投資者極具吸引力
流動性兼顧深度與多元化,無隱藏費用
無對賭模式,不重新報價
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