October CPI Surge Adds Pressure to Market Turmoil

The upcoming October Consumer Price Index (CPI) report, due on November 13, is critical for markets as it could indicate rising inflation and interest rates. Analysts expect a 0.2% month-over-month increase, but CPI swaps suggest a hotter 0.3% rise, which could lead to significant market shifts. If inflation expectations continue to rise, 10-year interest rates might break out above current resistance levels, potentially reaching 4.75%. This report is pivotal as it comes at a crucial technical point for the markets.