US dollar trades flat, with its rise slowing following the CPI announcement.

The US Dollar (USD) expected to continue its upward trend on Wednesday, indicating that there is still fuel in the tank for a push higher supported by rising US yields. The Trump trade is becoming increasingly priced in, and while the Fed remains data reliant, traders are steadily reducing their bets for another interest-rate decrease in December, which might give the Greenback another boost.

The most recent CPI statistics suggest that a December rate drop is still conceivable.

One of the key events in the US economic calendar is This week sees the release of the October US Consumer Price Index. Despite the narrow ranges, all numbers met expectations. This explains the Greenback’s mild reaction to the numbers.

Daily market movers: CPI in line with prediction, US Dollar index is trading above 106.00, approaching a new six-month high.

The Mortgage Bankers Association (MBA) began this Wednesday’s calendar at 12:00 GMT with its weekly mortgage applications tracker. Applications increased by 0.5% this week, after falling by 10.8% the previous week.

The US Consumer Price Index (CPI) announcement for October came as no surprise.

Monthly headline inflation stayed constant at 0.2%, while the yearly estimate increased to 2.6% from 2.4%.

Monthly core inflation stayed constant at 0.3%, while the annual figure remained consistent at 3.3%.

Five Federal Reserve members scheduled to speak out this Thursday:

Federal Reserve Bank of Minneapolis President Neel Kashkari interviewed by Bloomberg TV at 13:30 GMT.

Near 14:30, Federal Reserve Bank of New York President John Williams delivers welcoming remarks at the Academy for Teachers Master Class in New York.

Lorie Logan, President of the Federal Reserve Bank of Dallas, makes the opening comments at the eighth joint energy conference held by the Federal Reserve Banks of Dallas and Kansas City around 14:45 GMT.

Alberto Musalem, President of the Federal Reserve Bank of St. Louis, will deliver a speech and participate in a Q&A session discussing the US economy and monetary policy at the Economic Club of Memphis at 18:00 GMT.

Around 18:30 GMT, comments are expected from the Federal Reserve Jeffrey Schmid, President of the Bank of Kansas City, will deliver the keynote speaker at the ninth joint energy conference presented by the Federal Reserve Banks of Dallas and Kansas City.

Equities are looking for direction after a lackluster performance on Tuesday.

Equities are looking for direction after a lackluster performance on Tuesday. The European and US equities markets both show marginal gains and losses.

The CME FedWatch Tool expects the Fed to decrease interest rates by another 25 basis points (bps) during its meeting on December 18. There is a 37.6% likelihood that interest rates will remain unchanged. While the rate-cut scenario is the most likely, traders reduced some of their rate-cut bets from a week ago.

The US 10-year benchmark rate is 4.38%, down after the CPI announcement.