EUR/USD trades at 1.1166 as the US Dollar rallies to a 12-day high of 102.41 following hot October CPI data that makes a December Fed rate hike all but certain.
Hot October US CPI, released November 10, has made a December Fed hike 'all but certain' per TD Securities, with Waller open to a 50bps move. Rate-hike expectations lift the Dollar and push EUR/USD down to 1.1166, below the 20-day EMA at 1.1202 and near the 17-month low at 1.1104.
The hot October CPI print has sealed expectations of a December Fed hike, with debate now on 25 versus 50bps, and Waller's 9/10 hawkish speech score supports further tightening. The DXY sits near a fresh 12-day high of 102.41, and the Fed Sentiment Index rising to 145.50 confirms a hawkish shift favoring the Dollar.
The EUR/USD pair remains under pressure at 1.1166 as a hot October US CPI print cements expectations for a December Federal Reserve rate hike. Markets are now debating whether the central bank will opt for a 25bps or a 50bps increase, with Fed Governor Waller signaling openness to the larger move. The US Dollar Index (DXY) holds near a 12-day high of 102.41, while the pair struggles to reclaim its 20-day EMA at 1.1202.
Stronger-than-expected US inflation for October has convinced markets the Fed will raise rates in December, possibly by a bigger-than-usual 50bps, which strengthens the Dollar against the Euro.
Resistance is the 20-day EMA at 1.1202; below, the 17-month low at 1.1104 is key support, and a break there opens the way toward 1.1000.
October US CPI came in hot, making a December Fed rate hike all but certain, and Fed Governor Waller signaled openness to an even larger 50bps move, pushing the Dollar Index to a 12-day high of 102.41.