#HotCPIDecemberHikePriced
The U.S. Consumer Price Index (CPI) report for October rose 0.4% month over month (above the estimated 0.3%), while core CPI increased 0.3% (above the forecast 0.2%), prompting markets to fully price in (100% probability) a Federal Reserve rate hike in December.
Futures and tracking tools such as the CME FedWatch Tool put the probability of a 25-basis-point increase in December at 100% (up from around 80% before the report).
Possibility of a larger move (50 bps): Statements by officials such as Fed Governor Christopher Waller and Lorie Logan opened the door to considering a 50-basis-point hike or consecutive increases if core inflation remains firm, although most of the market is leaning toward 25 bps.
The U.S. dollar (USD) and Treasury yields rose in response. Technology stocks (such as Nvidia) fell under pressure from the more hawkish rate outlook.
$BNB
$NVDAB
The U.S. Consumer Price Index (CPI) report for October rose 0.4% month over month (above the estimated 0.3%), while core CPI increased 0.3% (above the forecast 0.2%), prompting markets to fully price in (100% probability) a Federal Reserve rate hike in December.
Futures and tracking tools such as the CME FedWatch Tool put the probability of a 25-basis-point increase in December at 100% (up from around 80% before the report).
Possibility of a larger move (50 bps): Statements by officials such as Fed Governor Christopher Waller and Lorie Logan opened the door to considering a 50-basis-point hike or consecutive increases if core inflation remains firm, although most of the market is leaning toward 25 bps.
The U.S. dollar (USD) and Treasury yields rose in response. Technology stocks (such as Nvidia) fell under pressure from the more hawkish rate outlook.
$BNB
$NVDAB
