The Dollar Index rose to 102.11 as investors await October inflation data, with Deutsche Bank forecasting 25bp Fed rate hikes in December and March.
The Dollar Index closed at 102.11, up 0.51%, after strong payrolls shifted focus to October CPI (Tuesday) and PPI (Friday). Deutsche Bank's economists forecast softer monthly inflation prints (0.20% MoM for both) and still expect 25bp Fed rate hikes in December and March, which supports the dollar. Softer-than-expected CPI could however limit further gains.
The US Dollar Index climbed 0.51% to 102.11 following strong payroll data. Deutsche Bank economists maintain a bullish outlook, projecting 25bp Fed rate hikes in December and March, while markets shift focus to upcoming October CPI and PPI releases.
The Dollar Index rose 0.51% to 102.11 after strong US payrolls, and Deutsche Bank still expects 25bp Fed rate hikes in December and March, with markets now focused on October CPI and PPI this week.
October CPI on Tuesday and PPI on Friday; Deutsche Bank expects monthly inflation to slow to 0.20%, and notably the year-on-year CPI rate cannot be calculated because October 2025 index levels were not produced during last year's government shutdown.