Dollar Falls After Lower-Than-Forecast U.S. Inflation Data

Core Insights - U.S. headline inflation rose to an annual rate of 3.0% in September, up from 2.9% in August, which was below economists' expectations of 3.1% [2] - Core inflation unexpectedly eased to 3.0% from 3.1%, contrary to expectations for it to remain unchanged [2] - The data has strengthened market expectations for a 25 basis-point rate cut by the Federal Reserve, with a 99% probability now priced in, up from 94% prior to the data release [2] Market Reactions - Following the inflation data, the dollar declined, reflecting market sentiment regarding potential interest rate cuts [1][2] - The Dow Jones Industrial Average surpassed 47,000, indicating a positive market response to the inflation report [1]