Ella 
181
Inflation data underscores favorable outlook
Of course, we have seen enough information from this CPI report that we still think that inflation will continue to move slowly lower and support our view that the Fed is likely to have completed its tightening cycle at this stage.
As such, we suspect that this data will only reinforce the USD’s current range-bound trading. In fact, since April, the U.S. dollar index has mainly fluctuated between 100-104. This CPI report is enough to maintain the current market expectations for the Federal Reserve to cut interest rates next year. That would limit the dollar’s upside, while weak growth abroad may also temporarily limit the dollar’s downside.
