Inflation in the US, as measured by the Personal Consumption Expenditures (PCE) Price Index, rose to 4.7% YoY in November, the US Bureau of Economic Analysis reported on Thursday. That was above the consensus forecast for an inflation rate of 4.5% and marked a substantial acceleration from October's inflation rate of 4.2%, which was upwardly revised from 4.1% 

MoM, the Core PCE Price Index rose at a pace of 0.5% versus expectations for a 0.4% MoM growth rate and following October's 0.5% reading, which was upwardly revised from 0.4%. 

Market Reaction

Despite hotter than expected November PCE figures and better than expected MoM growth in Durable Goods Orders, as well as still very solid growth in US Personal Income and Spending and another very low weekly initial jobless claims number, the DXY has not yet reacted to the latest US data release. But the data is broadly bullish for the dollar and strengthens the case for the Fed's increasingly hawkish stance.