U.S. Inflation Data and Fed Rate Hike Expectations

The dollar index rose on Wednesday following an increase in U.S. inflation data for August

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[{"selector":"#anim-84f357a4-00a3-4bb6-a0d5-70c364178759 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-7.237989520598276%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-1003d42b-b442-4fb4-b4b0-7de6324b3707","keyframes":{"transform":["translate3d(-109.91254%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c6616337-fc75-4552-84f7-8820171f62ea","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9c5f1afb-8842-48d6-b4bb-384ab2575135","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-b8ba0ea6-316b-401c-be7b-502ccae2412e","keyframes":{"transform":["translate3d(115.55555%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-0835e9ea-5546-45fd-818b-80a4c41b08e6","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ecbce724-eee9-4663-b799-0811d7e7dbce","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] The consumer price index (CPI) for August showed a significant rise of 0.6%, the largest since June 2022

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[{"selector":"#anim-11b0573b-3c39-432d-8118-5f8379735d67 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-7.237989520598276%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-a212db04-7c5d-4353-b68d-d46f21d18f30","keyframes":{"transform":["translate3d(-109.91254%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7f7affa0-d74a-4e65-a377-0d6546490b19","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-1422c6c2-6615-4dd5-b84c-cd52981416f9","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-387f597c-39d4-45e0-aea8-adf0e6a423c5","keyframes":{"transform":["translate3d(115.55555%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7fc77084-50d2-4213-8566-2bf308a44455","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-34241d17-1f24-445e-aa90-e13a9054c90c","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] Excluding the volatile food and energy components, the CPI increased by a more moderate 0.3%

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[{"selector":"#anim-cb7fbe32-4dd8-4398-8dce-f401a1217129 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-7.237989520598276%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-14b7f07a-9f42-4480-b7d2-773dc78e17b2","keyframes":{"transform":["translate3d(-109.91254%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-3856e17a-9549-4e44-abc4-64d0fccb3d48","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-47b7a92c-587a-4ef4-ad22-3bf851a43919","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-69c1aede-8820-4d18-ae3a-96fcfecab1d3","keyframes":{"transform":["translate3d(115.55555%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-27d0d290-4268-48dc-aa03-d8678f0808f0","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-efde98dd-aedf-4513-ac80-08dcd0381f5f","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] Despite the CPI data, market sentiment remained unchanged regarding the Federal Reserve's upcoming policy announcement scheduled for September 19-20

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[{"selector":"#anim-b85097fe-de1b-41cb-b0e6-b597cf9299b7 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-7.237989520598276%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-95a11811-544b-4aa3-aeaa-9d60134b467a","keyframes":{"transform":["translate3d(-109.91254%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c4e112ee-b19a-4dde-ab61-97e51ee8b7c8","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-cf7ed8fe-c6d6-4ce4-afab-3be108d1f3f6","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-9b240d76-b9cf-400d-a788-2c96606e2732","keyframes":{"transform":["translate3d(115.55555%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-8a05e60f-0693-4ea6-9fa0-b1eca8026eb0","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-52578194-4d2c-4238-930e-cf9cebb2c063","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] Expectations for a 25 basis point rate hike at the November meeting, which had been increasing earlier in the week, slightly decreased to 40.8% from 41.1%

[{"selector":"#anim-13229247-7799-42c9-82e0-1a2f4959cf63 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-7.237989520598276%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-96783bde-ae22-4749-b624-ca1966069fc2","keyframes":{"transform":["translate3d(-109.91254%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-26d5f761-2381-4bc1-8ecd-65ac5a8ff8ac","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-a30056e7-1465-4e8b-b596-0b97834f775e","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-9b3bbda9-0769-43e9-97aa-990433e31c5e","keyframes":{"transform":["translate3d(115.55555%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e6ecd26a-d20d-4408-ac0f-acf266e0113e","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-4a21c36f-3f62-4086-aa38-83c9bd7d039c","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] Marvin Loh, a senior global macro strategist at State Street in Boston, expressed that the CPI data did not significantly alter the overall narrative regarding rate hikes