- US October inflation printed at 3.2% year-on-year, lower than the 3.3% expected and the previous month’s 3.7%.
- Similarly, US Producer Price Index (PPI) came out at 1.3% vs 1.9% expected and September’s 2.2%. These show that inflation is trending towards the Fed’s 2% inflation goal.
- Despite US Retail Sales coming out better than expected, Jobless Claims ticked higher, hinting at possible weakness in the labor market.
- The market is currently pricing in a pause at the December Federal Open Market Committee (FOMC) meeting and three to four 25-bp worth of cuts for next year, with the first cut expected in June 2024.