Deutsche Bank’s Jim Reid and colleagues highlight that Fed funds futures shifted in a more hawkish direction after the CPI release, lifting expectations for future rate hikes.

The US Dollar (USD) outperforms its major currency peers, except the Japanese Yen (JPY), on Thursday, amid fears that the Federal Reserve (Fed) could turn aggressive on its current monetary tightening cycle to contain elevated inflationary pressures.

The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, hits a fresh high since April 2025 during the Asian session on Thursday, with bulls looking to build on the momentum beyond the 103.00 mark.

Rabobank’s FX Strategy team argues that reduced fears of political interference at the Federal Reserve and evidence of renewed safe-haven demand support the Dollar. The bank notes that concerns over the US budget deficit and treasury market stresses could weigh on the Dollar over the medium term, but concludes that last year’s Dollar debasement fears were exaggerated.

The more artificial intelligence (AI) a US index holds, the more of the fall that began on November 5 it has now recovered. The NASDAQ 100 touched just under 28,600, above where it started that session, and is trading near 28,400.

The US Dollar Index (DXY) rises for a second straight day on Wednesday, hitting a fresh year-to-date high as hotter-than-expected US consumer inflation and calls from Federal Reserve (Fed) officials for further tightening fuel bets on more aggressive rate hikes.

Rabobank’s FX Strategy team argues that reduced fears of political interference at the Federal Reserve (Fed) and evidence of renewed safe-haven demand support the US Dollar (USD).

Societe Generale’s Kit Juckes argues that despite potential future US fiscal tightening and greater AI regulation, current data show a resilient US economy. Core CPI has risen steadily, with headline CPI up 1% over two months, alongside strong payrolls, retail sales and GDP.

The US Dollar (USD) outperforms its major currency peers on Wednesday, as financial markets have started anticipating a bigger Federal Reserve (Fed) interest rate hike at the December policy meeting.

MUFG’s Derek Halpenny notes that a sharp rise in the 2-year UST yield, driven by stronger US CPI and hawkish comments from Fed Governor Waller, has revived speculation of a 50bp FOMC hike.

ING’s Chris Turner notes the Dollar is trading near this year’s highs after another hot US inflation print and hawkish comments from Fed member Chris Waller. ING argues that bearish yield curve flattening typically supports the Dollar versus procyclical currencies.

Dow Jones futures gain 0.16% to trade around 52,400 during the European hours on Wednesday. Meanwhile, S&P 500 futures advance 0.60% to trade around 7,590 and Nasdaq 100 futures rise 1.45% to trade around 28,230.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is gaining ground for the second successive day and trading near 102.40 during the European hours on Wednesday.

Rabobank’s RaboResearch Global Economics & Markets team highlights that hotter-than-expected US CPI has pushed US 2-year and 10-year yields sharply higher, reviving talk of a possible 50 bps Federal Reserve hike. The report links the move to renewed inflation pressures in groceries, housing and services, and notes that this comes just after investors had rushed back into Treasuries.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is remaining steady after registering over 0.5% gains in the previous day and trading around 102.20 during Asian hours on Wednesday.

About a sixth of Monday's rebound is gone from all three US stock indexes after a hot October Consumer Price Index (CPI) and talk of a half-point Fed hike. The Nasdaq 100 gave back about half of Monday's gain, hitting a session low just above 27,400, and is now back near 27,750.

The US Dollar (USD) is posting minor gains against most peers on Tuesday, with markets calm ahead of the US Consumer Price Index (CPI) release, while lower Oil prices are weighing on safe havens, including the Greenback.

The US Dollar (USD) is facing a shifting macroeconomic narrative as market focus rotates between near-term Federal Reserve (Fed) policy expectations, energy price dynamics, and equity market underperformance.

ING’s Chris Turner expects the US Dollar (USD) to remain underpinned into early 2027 by strong US growth, inflation above 3% and a hawkish Federal Reserve. He notes that as headline inflation falls back towards the Fed’s 2% target, short-dated US rates should decline.

TD Securities’ macro team, led by Jayati Bharadwaj and colleagues, argues that the US Dollar (USD) is losing its status as an effortless haven, with muted gains despite an AI-driven global equity selloff. They expect US vs Rest of the World (RoW) equity performance to remain the key driver.

MUFG’s Lee Hardman notes the US Dollar has weakened, with the Dollar Index dropping below Friday’s high as Brent declines towards USD90. Lower Oil prices and falling US Treasury yields are easing pressure on the Fed, while markets await the October US CPI report. Futures still price a December Fed hike but fewer moves in 2027.

Dow Jones futures advance 0.48% to trade around 52,750 during the European hours on Tuesday. Meanwhile, S&P 500 futures gain 0.17% to trade around 7,590 and Nasdaq 100 futures decline 0.15% to trade around 27,970.

Deutsche Bank’s Jim Reid highlights a strong rebound in US equities, with the S&P 500 posting its best day since the Iran ceasefire announcement in April. The move was led by AI-related and semiconductor names after positioning had turned underweight. The index has almost fully recovered its post-midterm losses, while volatility, as measured by the VIX, fell sharply.

The US Dollar (USD) is broadly under pressure against its peers amid lower oil prices due to United States (US)-Iran deal hopes.

The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, consolidates around the 101.70 region during the Asian session on Tuesday, awaiting further developments surrounding the Middle East crisis and the US consumer inflation figures.

The safe-haven US Dollar (USD) is showing the weakest performance among major currencies on Monday, as improving market sentiment boosts riskier-perceived currencies, with negotiations for a Middle East peace apparently making progress and Oil prices dropping to levels near two-month lows.

Brown Brothers Harriman’s (BBH) Elias Haddad notes that the US Dollar (USD) has given back part of its post-NFP gains, but still benefits from robust US economic activity, a firm labor market and sticky inflation that underpin the Federal Reserve’s (Fed) hawkish bias.

MUFG’s Lee Hardman notes the US Dollar has rebounded, lifting the Dollar Index back above 102.00 after post-election losses. Stronger US labour market data and higher employment growth have shifted the Federal Reserve’s focus toward upside inflation risks.

ING strategists Francesco Pesole, Frantisek Taborsky and Chris Turner note that recent contagion from AI-driven equity selling into defensive stocks has lifted the Dollar, even before strong US jobs data.

Dow Jones futures advance 0.65% to trade around 51,720 during the European hours on Monday. Meanwhile, S&P 500 futures gain 0.30% to trade around 7,420 and Nasdaq 100 futures decline 0.12% to trade around 27,050.