Dollar Strengthens on U.S. CPI Data; Will the Euro/Dollar Pair Test Support in the $1.11 Range?
11.11.2026
- Germany's October Consumer Price Index (Revised)
- Remarks by ECB President Lagarde
In the U.S. currency market the previous day, the U.S. dollar gained ground as the October CPI came in at 0.4% month-over-month for the overall index and 0.3% for the core index—both exceeding expectations.Hawkish comments from Federal Reserve Governor Waller and Dallas Fed President Logan also reinforced expectations of a rate hike, pushing the yield on the 10-year U.S. Treasury note up to around 4.98%.The dollar-yen pair was bought up from a low of around 157.84 yen to around 158.85 yen, closing at around 158.73 yen. With the U.S. bond market closed today, we will be watching to see if dollar buying persists.
European currencies fell against the dollar as the euro and the pound weakened following the release of U.S. CPI data, which triggered a rise in the dollar. The euro-dollar pair briefly rose to around $1.1251 before falling back to around $1.1145 and closing at around $1.1162.The GBP/USD pair also fell to around $1.3312 during New York trading hours, remaining under pressure against the dollar even after the Bank of England’s rate hike the previous week. In European equities, while Germany’s DAX index rose, the UK’s FTSE 100 index fell. Today’s German inflation data and remarks by the ECB president are likely to influence the euro exchange rate.
Today’s economic data included the release of the revised German Consumer Price Index for October at 4:00 p.m., which came in at -0.2% month-over-month and +2.8% year-over-year, in line with market expectations.Later, at 6:45 p.m., ECB President Lagarde is scheduled to speak, with the focus on the outlook for European inflation and monetary policy. In the U.S., the bond market is closed for Veterans Day, and there are few major economic indicators scheduled for release.On the following day, the 12th, the UK’s preliminary GDP figures for the July–September quarter and U.S. initial jobless claims are also scheduled for release. We will carefully monitor the reaction of European currencies.
Author: Keisuke Sakurai
