U.S. CPI topped expectations, lifting the dollar and prompting traders to increase bets on further Fed hikes. The Bloomberg dollar spot index jumped, breaching last November’s high and rising as much as 0.4% intraday to its strongest level since May 2025. BLS data showed U.S. consumer prices posted their largest gain in five months, led by higher fuel costs. Monex FX trader Andrew Hazlett said the stronger-than-expected CPI has pushed market pricing toward additional Fed tightening. Through the

2026-10-14

U.S. CPI topped expectations, lifting the dollar and prompting traders to increase bets on further Fed hikes. The Bloomberg dollar spot index jumped, breaching last November’s high and rising as much as 0.4% intraday to its strongest level since May 2025. BLS data showed U.S. consumer prices posted their largest gain in five months, led by higher fuel costs. Monex FX trader Andrew Hazlett said the stronger-than-expected CPI has pushed market pricing toward additional Fed tightening. Through the four weeks to Oct. 9 the dollar is up nearly 3%, its longest consecutive advance since early 2025; markets now price cumulative further Fed hikes of more than 90 bps.