The financial markets are intently focused today on US inflation data. Expectations are that both the headline CPI and core CPI remained unchanged in October from the previous month's readings of 2.4% and 3.3%, respectively. This stagnation in disinflation supports the notion that bringing inflation back to Fed's 2% target may prove increasingly challenging in its final stages. Adding to inflationary concerns are fiscal and trade policies from President-elect Donald Trump, which could create further upward pressure on prices in the coming year. Such an outlook would likely prompt Fed to maintain cautious and gradual pace in lowering interest rates. In currency markets, the Dollar has shown strength this week, holding its position as the top performer. However, it remains contained below last week’s highs against commodity currencies. In contrast, Yen is lagging, followed by Sterling and Euro, while Swiss Franc positions around the middle.... |