All eyes are on US inflation tonight. With markets increasingly expecting another Fed rate hike in December, October's CPI report could determine whether the US dollar extends its rally or gold gets another chance to climb.

Economists expect headline CPI to rise 0.3% month-on-month, while core CPI is forecast at 0.2%. A hotter reading could strengthen the case for tighter Fed policy, while softer inflation may ease rate concerns.

How Could Different CPI Results Move the Markets?

Four Markets Worth Watching

1. Gold: Can $4,100 Hold?

Hot inflation could push Treasury yields and the dollar higher, making gold less attractive. A softer reading could give the recent gold rebound more room to run.

2. US Dollar: Another Boost Ahead?

If inflation exceeds expectations, traders may price in a more aggressive Fed, potentially supporting the dollar. Softer data could weaken that outlook.

3. NAS100 & US30: Rate Pressure or Relief Rally?

Higher inflation could delay expectations of easier monetary policy, weighing on stocks, especially technology shares. A cooler reading may support a broader market rebound.

4. EUR/USD: A Fresh Directional Signal

A stronger dollar could push EUR/USD lower, while softer US inflation may help the euro recover.

The Bottom Line

Tonight's CPI is more than just another inflation report. It could reshape expectations for the Fed's December decision.

Hotter CPI: Watch the USD higher, while gold and US indices face pressure.

Softer CPI: Watch for a weaker USD and potential upside in gold and equities.