U.S. CPI likely to rise in October on higher energy prices, headline inflation to edge higher in coming months

The consumer price index (CPI) of the United States is expected to have risen during the month of October, following higher global energy prices. Also, the headline inflation is likely to maintain the uptrend in the coming months, unless oil prices ease to some extent.

The U.S. October CPI data, due to be released today at 14:30GMT, is estimated to have increased 0.2 percent m/m in October and 2.2 percent y/y, while the headline index increased by 0.3 percent m/m and 1.6 percent y/y, Danske Bank reported.

Further, the States will also witness the release of the Philadelphia Fed business survey, as well as building permits and housing starts for October. Markets will closely monitor the host of data, before deciding on the next course of movement.

Further, Fed Chair Yellen is due to testify before the congressional Joint Economic Committee today at 16:00 CET. Market participants will be looking for any guidance on a potential rate hike in December, which is by now nearly fully priced in.

However, comments on the recent pick-up in inflation, as well as any remarks on the monetary policy implications of Trump's proposed fiscal policies, will also be closely followed.

Meanwhile, the dollar index was down 0.10percent at 100.21, compared to day’s low of 100.08, while at 8:00GMT, the FxWirePro's Hourly Dollar Strength Index stood neutral at 34 (lower than the 75 benchmark for bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex