In terms of estimates, headline CPI is forecast to have risen 0.1% on a seasonally adjusted basis in October. This should push the annual rate to 3.3% from 3.7% previously. Meanwhile, the core gauge, which excludes food and energy, is seen rising 0.3% in monthly terms, with the 12-month related reading unchanged at 4.1%.The Fed has embraced a data-centric stance and noted that it will “proceed carefully”.
Despite this cautious approach, the institution has not entirely closed the door to additional policy firming, with Chair Powell indicating that officials are not confident that they have achieved ais not on a pre-set course and is ready to respond as appropriate to adverse developments that may hinder the fulfillment of its mandates. In this context, any upward deviation of the October CPI figures from consensus expectations could lead policymakers to favor anotherIf interest rate expectations shift in a more hawkish direction on account of a hot CPI report, U.S. yields should rise, boosting the. This, in turn, might exert downward pressure on gold, the Nasdaq 100, and EUR/US