Kyle Chapman, FX analyst at Ballinger Group, said that the U.S. CPI rose in line with expectations in October, recording an annual rate of 2.6%, and core inflation was steady at 3.3%. The report is expected to have little impact on the Federal Reserve, but it may indicate that some in the market are already preparing for higher numbers. Chapman said the details of the inflation data look reasonable enough to continue easing in the short term, but there will be a lot of indicators before December. Chapman added that it is likely that fiscal policy will dominate the interest rate outlook next year.