Dollar Holds Decline Ahead of CPI Report

2026-11-10 02:45 By Jam Kaimo Samonte 1 min. read

The US Dollar Index hovered around 101.7 on Tuesday after weakening in the previous session, as investors awaited the October Consumer Price Index report, with both headline and core inflation expected to ease amid stabilizing energy prices.

Richmond Fed President Tom Barkin said on Monday that the central bank should proceed “with care” when adjusting monetary policy, highlighting persistent inflation as its biggest concern.

Markets are currently pricing in an 84% probability of a Fed rate hike in December, up considerably from around 74% a week earlier following last week’s stronger-than-expected employment data.

Meanwhile, demand for the dollar as a safe-haven asset softened as oil prices continued to decline on growing optimism over a potential US-Iran peace agreement.

President Donald Trump expressed confidence that the conflict in Iran was nearing an end following discussions with Qatar’s prime minister.



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Dollar Holds Decline Ahead of CPI Report
The US Dollar Index hovered around 101.7 on Tuesday after weakening in the previous session, as investors awaited the October Consumer Price Index report, with both headline and core inflation expected to ease amid stabilizing energy prices. Richmond Fed President Tom Barkin said on Monday that the central bank should proceed “with care” when adjusting monetary policy, highlighting persistent inflation as its biggest concern. Markets are currently pricing in an 84% probability of a Fed rate hike in December, up considerably from around 74% a week earlier following last week’s stronger-than-expected employment data. Meanwhile, demand for the dollar as a safe-haven asset softened as oil prices continued to decline on growing optimism over a potential US-Iran peace agreement. President Donald Trump expressed confidence that the conflict in Iran was nearing an end following discussions with Qatar’s prime minister.
2026-11-10
Dollar Reverses on Monday
The dollar Index fell nearly 0.4% to 101.8 on Monday, reversing some of Friday’s 0.7% rally, its largest daily gain in nearly six months. The greenback came under pressure amid declining oil prices, while the AI-driven market rotation lost momentum. Last week, a Democratic sweep of Congress last week prompted investors to price in the possibility of tighter regulation and potential constraints on AI-related capital expenditure. Meanwhile, markets are turning their attention to this week’s CPI and PPI releases, which are expected to signal a moderation in both monthly headline consumer and producer inflation. Against this backdrop, market-implied odds of another 25bps Fed rate hike next month currently stand at around 80%. The dollar weakened broadly, recording its steepest losses against the Australian dollar, euro and British pound.
2026-11-09
Dollar Eases After Jobs-Driven Rally
The US dollar index slipped below 102 on Monday, paring gains from the previous session when stronger-than-expected jobs data bolstered bets for a Federal Reserve rate hike in December. Nonfarm payrolls rose by 165,000, more than double the 65,000 forecast, while the unemployment rate edged down to 4.1%, highlighting the resilience of the labor market. Markets are now pricing in an approximately 81% probability of a Fed rate increase in December, up from 71% before the employment report. In recent Fed commentary, San Francisco Fed President Mary Daly indicated that further rate hikes may still be necessary despite the recent tech stock selloff. Investors are now turning their attention to key US inflation data due this week for additional clues on the monetary policy outlook, with the CPI report scheduled for Tuesday and the PPI figures expected on Friday.
2026-11-09