US inflation rises in October, signaling steady rate cuts from the Federal Reserve

The October inflation rate in the United States increased in line with expectations, pointing toward a potential continuation of rate cuts by the Federal Reserve. Data released by the US Labor Department on Wednesday, November 13, 2024, showed that the US consumer price index (CPI) rose 0.2% for the fourth consecutive month.

#USEconomicData | U.S. October Core Inflation Rate At 0.3% (MoM) Vs Est Of 0.3%

U.S. October Inflation Rate At 0.2% (MoM) Vs Est Of 0.2%

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Following the inflation report, US Treasury yields saw a decline, with the yield on the benchmark 10-year note dipping 2.3 basis points to 4.41%.

Marvin Loh, a senior global market strategist at State Street in Boston, told Reuters, “There was a lot of concern heading into this report, as it adds another element to a market already on edge due to the Fed and inflation. The drop in yields reflects a minor relief rally.”

The US dollar advanced to near a seven-month high against major currencies, reaching its strongest level since mid-April.

The recent rally was largely driven by Donald Trump’s victory in last week’s US presidential elections. The Street expects potential inflationary policies, including tariffs, under the incoming Trump administration.

The dollar index, which measures the greenback against a basket of major currencies like the yen and euro, climbed 0.33% to 106.34, peaking at 106.50.

In the cryptocurrency market, Bitcoin surged past the $90,000 mark for the first time, boosted by optimism over Trump’s victory and expectations that his policies may benefit digital assets. Bitcoin rose 3.63% to $91,519, while Ethereum saw a modest increase of 0.46% to reach $3,295.60.

With inputs from agencies