US October inflation topped estimates for a third straight month and Fed
Governor WALLER backed a December hike, lifting the dollar index more than 0.6%
on Tuesday — its largest single-day gain since September. Markets increased odds
of further tightening in 2027 and began pricing a small chance of a one-off 50bp
December move after already fully pricing a 25bp rise. Dallas Fed President
Lorie Logan also backed at least two additional 25bp hikes. Major currencies
fell against the dollar: NOK, AUD and SEK slid over 1%, while JPY dropped up to
0.6%. Market participants see further near-term upside for the dollar while the
The Fed maintains a hawkish stance.
