At 19:22 GMT, DXY is trading 98.447, up 0.053 or +0.05%.
Shock Tempered by Data Caveats
Thursday’s delayed CPI report showed headline inflation rising 2.7% year over year, well below the 3.1% consensus. Core CPI also undershot expectations at 2.6% versus a 3% forecast. Normally, softer inflation reduces rate expectations and weakens the dollar by lowering yield support. That dynamic was visible immediately after the release, with the DXY dipping toward 98.3.
However, the Bureau of Labor Statistics confirmed the report lacked standard components due to the inability to collect October survey data. That raised concerns about distortions, limiting trader conviction. As a result, markets hesitated to aggressively price in faster Federal Reserve easing, helping the dollar stabilize.
Labor data also remained supportive. Initial jobless claims fell to 224,000, easing concerns about a rapid labor market breakdown. This tempered expectations for an urgent Fed response despite softer inflation.
Central Bank Messaging Caps Dollar Losses
Cross-currency flows also helped contain dollar weakness. The Bank of England delivered a rate cut but paired it with a narrow 5–4 vote and guidance suggesting future decisions would be finely balanced.
The ECB held rates steady and lifted some growth and inflation projections, reinforcing the idea that policy easing outside the U.S. may be nearing its end. These signals limited relative rate advantages for the euro and pound, reducing pressure on the DXY.
