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US Dollar: Rate hike repricing boosts upside risks – MUFG
MUFG’s Derek Halpenny notes that a sharp rise in the 2-year UST yield, driven by stronger US CPI and hawkish comments from Fed Governor Waller, has revived speculation of a 50bp FOMC hike.
US Treasuries: CPI shock fuels yield surge – Deutsche Bank
Deutsche Bank strategists explain that an upside surprise in US core and headline CPI, combined with hawkish comments from Fed officials, triggered a sharp selloff in US Treasuries. Two-year yields saw their biggest daily jump since 2025, while 10-year yields approached 5%. Market pricing now reflects a more extended and aggressive Fed hiking cycle into 2027.
Gold Price Forecast: XAU/USD rallies remain limited with bulls capped below $4,050
Gold (XAU/USD) is showing a shallow recovery attempt on Wednesday, with bulls struggling to consolidate above $4.050 during the European session, leaving bears in control after the impulsive reversal from the $4,150 resistance area on Tuesday.
Gold struggles below $4,050 as Fed rate-hike bets boost US Dollar
Gold (XAU/USD) reverses its earlier gains on Wednesday as a broadly stronger US Dollar (USD) weighs on the precious metal.
EUR/USD Price Forecast: Rising US Dollar backs fresh downside leg below 1.1100
The Euro (EUR) is down 0.2% to near 1.1138 against the US Dollar (USD) during the European trading session on Wednesday.
Australian Dollar seen vulnerable after weak data – Societe Generale
Kit Juckes at Societe Generale highlights that rising global bond yields are pressuring leveraged housing markets such as Australia. Recent NAB business confidence and home loans data were notably weak.
USD/JPY: Strong Dollar tests key resistance – ING
ING’s Chris Turner reports improving Japanese manufacturing sentiment, supported by semiconductor and data centre demand, strong corporate profits and firm wages. This backdrop could reinforce Bank of Japan (BoJ) confidence that inflation is stable near 2%.
S&P 500: Higher yields weigh on equities – Deutsche Bank
Deutsche Bank analysts report that the strong US CPI data and hawkish Fed commentary sparked a selloff in US Treasuries and pressured US equities. The S&P 500 slipped as investors priced faster hikes, with Tech and AI-linked names underperforming initially. However, a revenue beat and upgraded guidance from CoreWeave later supported futures, pointing to some recovery in the S&P 500.
US Dollar: Hot CPI supports stronger rate hike odds – BBH
Brown Brothers Harriman’s (BBH) Elias Haddad notes that a hotter-than-expected US October CPI report boosted the Dollar, triggered a sell-off in Treasuries led by the short end, and weighed on US stocks.
China: De-dollarisation focus and US asset exposure – DBS
DBS Group Research, led by FX & Credit Strategist Chang Wei Liang, examines China’s evolving holdings of US securities over the past decade. The study looks for evidence of de-dollarisation, highlighting substantial Chinese net outflows from US equities and bonds and assessing how geopolitical tensions and sanctions risk are influencing China’s portfolio allocation decisions.
US Dollar: Strong tone with yield curve support – ING
ING’s Chris Turner notes the Dollar is trading near this year’s highs after another hot US inflation print and hawkish comments from Fed member Chris Waller. ING argues that bearish yield curve flattening typically supports the Dollar versus procyclical currencies.
USD/CHF Price Forecast: Reaches highs near 0.8300 amid strong bullish traction
The US Dollar (USD) rallies Wednesday, fuelled by higher bets of a Federal Reserve (Fed) rate hike in December, with the Swiss Franc (CHF) crushed by higher appetite for risk and an unfavourable monetary policy divergence.
Japanese Yen: Domestic flows hint at medium-term support – MUFG
Derek Halpenny at MUFG highlights that USD/JPY has moved back toward 160 after US CPI, keeping intervention risks elevated. At the same time, JGBs have sold off but sentiment is improving, with stronger household demand and potential tax incentives.