S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
- EUR/USD retreats to 1.1155 from Tuesday’s highs in the mid-1.1200s but remains within recent ranges.
- German final HICP data confirmed that price pressures eased in October.
- The US Dollar has gained traction amid hot inflation numbers and hawkish Fed speakers.
The Euro (EUR) extends losses against the US Dollar (USD) for the second consecutive day, on Wednesday, failing to find support in the final German inflation release. The EUR/USD trades at 1.1155, after retreating from session highs just above 1.1250 on Tuesday, although it remains within the previous range, above year-to-date lows at the 1.1110 area.
Final German Harmonized Index of Consumer Prices (HICP) data confirmed preliminary estimates of a 0.1% monthly contraction and the 2.8% year-on-year growth in October. These figures follow 0.6% and 3.3% respective increases in September.
US CPI data boosts Fed tightening hopes
Meanwhile, the US Dollar is outperforming most peers on Wednesday, favoured by a mix of hotter-than-expected US Consumer Price Index (CPI) figures and hawkish comments by Federal Reserve (Fed) speakers, which have practically confirmed that the central bank will hike rates in December.
US consumer prices rose 0.4% in October, overshooting the 0.3% growth expected by the market, amid higher costs of food and accommodation, according to data released by the US Bureau of Labor Statistics (BLS). Core inflation also beat expectations with a 0.3% increase, while year-on-year data was undisclosed due to the 2025 Federal Government shutdown.
On Wednesday, Philadelphia Fed President Anna Paulson called for a “further gradual tightening” ahead to bring inflation to target. A few hours later, Dallas Fed President Lorie Logan said that “it is clear that the Fed needs at least two more quarter-percentage-point increases.”
In this context, markets are practically fully pricing a rate hike at the December 9 Fed monetary policy meeting, with a 12% chance of a 50-basis-points hike priced in. This is boosting the US Dollar across the board.
