Investors await US CPI report and BoC rate cut, US dollar strengthens, market uncertainty.

From Investing.com: 2024-12-11 07:20:00

Investors are eagerly awaiting the US CPI report and Bank of Canada decision, with the possibility of a bumpy ride ahead for markets. The US dollar is on the rise as other central banks implement steeper rate cuts, putting even more focus on today’s US inflation numbers. Despite a rate cut being mostly priced in, a higher-than-expected CPI could sway Fed policymakers to hold off on cutting rates in December. The Bank of Canada is expected to make a 50-bps rate cut due to a spike in unemployment, with the loonie already hitting fresh lows.

The Australian dollar and euro are struggling, with the Aussie hitting a one-year low against the US dollar ahead of potential rate cuts. The euro is on the backfoot ahead of the European Central Bank meeting, as investors are uncertain about the extent of potential rate cuts. Meanwhile, the yen seesawed on data and Bank of Japan chatter, with the dollar back in the 152.50 yen region after fluctuating throughout the session.



Read more at Investing.com: All Eyes on US CPI as Dollar Edges Up; BoC Set to Slash Rates