The UK CPI data has just been released, coming in higher than expected at +0.6% m/m and +2.3% y/y in October. Estimates had predicted an increase of +0.5% m/m and +2.2% y/y, following flat m/m growth and a +1.7% y/y rise previously. GBP/USD rallied 40 points, with less than 100 basis points of cuts priced into the curve, suggesting a 3.75% low in June.
Elsewhere, Chinese banks left the Loan Prime Rate (LPR) unchanged, as expected: the 5-year LPR remains at 3.60%, and the 1-year LPR at 3.10%.
Overnight, Bitcoin hit another all-time high of $94,038.97, supported by a series of developments highlighting the growing embrace of the digital-asset industry in the U.S. under the Trump administration. Howard Lutnick, CEO of Cantor Fitzgerald at just 29 years old and a 9/11 survivor who tragically lost his brother, has been appointed U.S. Secretary of Commerce.
Looking Ahead:
Today, all eyes are on Nvidia Corp.’s results for fresh momentum, as the world’s most valuable company seeks to continue its remarkable run fuelled by spending on artificial intelligence hardware. The chipmaker rose 4.9% yesterday, and trading volumes in options suggest these results could be as influential as the Federal Reserve’s December meeting.
Market Update:
- The yield on 10-year Treasuries advanced by one basis point to 4.41%.
- Oil opens at $69.60 after an industry report signalled a build in U.S. crude inventories ahead of official government figures.
- Spot gold was little changed at $2,627 per ounce.
- Ether rose 0.4% to $3,109.36.
Beyond Nvidia’s results, we also have speeches from Fed officials Lisa Cook and Michelle Bowman.
