U.S. Inflation Data

As the offshore yuan dropped by 0.5%, the dollar index rose by 0.3%, reaching its highest level in two weeks.

The dollar index edged up 0.3% on Wednesday, reaching its highest in two weeks, with the offshore yuan falling 0.5%. A new administration in the U.S. could bring a potential resurgence of trade tensions with China, which is a key factor that will be closely monitored by investors in the coming months for its impact on both the global economic recovery and the U.S. inflation outlook.

What happened

Officials from the Bank of Japan had no objections to a potential interest rate hike in December, according to the minutes of the last meeting, which also indicated that the next meeting will be held to discuss the next move.

Meanwhile, some Federal Reserve members have signaled a potential pause in reducing interest rates, and their comments will be closely followed in the coming weeks.

An increase in October’s inflation could have been tolerated, but another above-normal figure in November would have a negative impact on the December 18th rate decision, placing the attention firmly on the data.

The U.S. inflation data was released. The expectation for inflation was 2.7%, while the core inflation expectation was set at 3.3%. Announced figures are:

• Consumer Price Index (October): 0.5% (expected 0.4%, prior 0.3%)

• Core Consumer Price Index (October): 0.6% (expected 0.3%, prior 0.2%)

Following the announcement of data in line with expectations, Bitcoin's (BTC) price soared to $98,700. The likelihood of the Fed making a 25 basis point cut at the December 18 meeting has increased to 86%.

Good cryptocurrency news could also support further positive openings in the stock markets.