The US dollar extended its rally after the inflation report, with the dollar index reaching its highest level since April 2025.
Where the majors stand
| Pair / index | Level | Move | Note |
|---|---|---|---|
| Dollar index (DXY) | 102.90 | +0.68% | Highest since April 2025 |
| EUR/USD | 1.11 | -0.65% | Lowest since May 2025 |
| USD/JPY | 159.84 | +0.69% | Strongest in over two months, near 160 |
| GBP/USD | 1.33 | -0.50% | Near a two-week low |
| USD/CHF | 0.833 | +0.93% | Highest since mid-October |
| AUD/USD | 0.685 | -0.23% |
Figures are as reported on 11 November 2026 and will have moved since.
What drove the move
The trigger was the hotter-than-expected October CPI and the resulting rise in expectations for a December Fed hike (87% per CME FedWatch). When traders expect higher US rates, dollar-denominated assets look more attractive and the dollar tends to rise against lower-yielding currencies.
Levels traders are watching
- USD/JPY near 160: the pair is close to the round number. Round levels often attract attention, and Japan has intervened in the past when the yen weakened sharply. Whether it would again is not something to assume.
- EUR/USD: DailyForex describes the pair as in a long-term bearish trend near its long-term low.
- USD/CAD: DailyForex points to a double bottom at 1.4109 support.
Things to keep in mind
- US markets were closed for a public holiday on 11 November, so liquidity may have been thin.
- Rallies built on rate expectations can reverse quickly if data softens or the Fed signals a smaller move.
FAQ
What is the dollar index? A measure of the US dollar against a basket of major currencies, dominated by the euro and yen.
Why does a rate hike expectation lift the dollar? Higher expected yields attract capital to dollar assets, increasing demand for the currency.
Will USD/JPY break 160? No one can know. Watch US yields and any official comments from Japan.