The dollar held near two-week highs and gold steadied after a hotter US inflation report and hawkish Federal Reserve comments locked in bets on a December rate hike.
MoneyTurkey Currencies Desk | 11 November 2026
Key points
- US consumer prices rose 0.4% in October, above the 0.3% forecast
- Markets now fully price a December Fed hike
- Gold steadied near $4,040 an ounce after a sharp fall
Hot inflation report
US consumer prices rose 0.4% month on month in October, above the 0.3% economists expected, while core prices, which strip out food and energy, rose 0.3% against forecasts of 0.2%, according to Bureau of Labor Statistics data reported by Reuters and Barchart. The bureau did not publish an annual rate for October because comparable 2025 data were lost to last year’s government shutdown.
Dollar near two-week high
The dollar index, which tracks the dollar against six major currencies, rose about 0.5% on Tuesday and held around 102.2 to 102.3 in Asian trade on Wednesday, close to its highest level since late October, according to Reuters reports carried by CNBC and Economy Middle East. Sterling eased to about $1.33. “We expect the dollar to stay strong and explore the top end of trading ranges over the coming weeks,” Chris Turner, global head of markets at ING, said, according to Investing.com.
Fed hike now fully priced
Traders have dropped bets on a December pause and now fully price a rate rise at the Fed meeting that ends on 9 December, with smaller odds of a larger half-point move, according to CME FedWatch data cited by CNBC and Barchart. Fed Governor Christopher Waller said he would support a quarter-point rise in December and could back a half-point move if inflation stayed hot. Dallas Fed President Lorie Logan said the Fed needs at least two more quarter-point increases.
Gold steadies near $4,040
Spot gold edged up to just above $4,040 an ounce in Asian trade on Wednesday after falling more than 2.5% on Tuesday, as higher rate expectations and a firmer dollar weighed on the metal, according to Reuters via CNBC and Investing.com.
For information only. Not investment advice.
Sources
- CNBC (Reuters): Dollar gains traction as Fed speakers warn of risks from inflation
- CNBC (Reuters): Gold edges higher after sharp selloff, Fed hike bets weigh
- Economy Middle East: Dollar index climbs to 102.30 as US CPI lifts Fed hike odds
- Barchart: Dollar jumps and gold falls on hot US CPI and hawkish Fed comments
- Investing.com via Yahoo Finance: Gold steadies near $4,040
- Investing.com via Yahoo Finance: Pound edges lower as Fed hike bets, hot CPI buoy dollar
