Lower than expected US inflation numbers for October triggered a market rally, as investors bet that the US Fed will temper its hawkish stance and scale back rate hikes.
US consumer price index (CPI) for the month increased by just 7.7% y-o-y, a visible easing off from 8.2% chalked up in the preceding month of September.
“In our view, if future CPI prints continue to show a sustained decline, we believe the Fed may consider pausing their rate hikes depending on economic conditions and the health of the labour market,” says Simon Teo, senior strategist at Phillip Nova.
