The US Producer Price Index (PPI) for September rose 2.7% year-over-year, slightly exceeding market expectations of 2.6%. Meanwhile, Core PPI, which excludes volatile food and energy prices, came in at 2.6%, falling short of the 2.7% forecast. Retail sales also showed mixed results, rising 0.2% month-over-month against a 0.4% estimate. Following the release, Federal Reserve Governor Stephen Miran commented that the current economic landscape calls for large interest rate cuts. Market participants have adjusted their outlook, with betting markets now pricing in an over 85% probability of a rate cut in December. The data indicates that while inflation remains present, the weakening labor market is becoming a more pressing concern for the Fed. This macroeconomic backdrop is contributing to a softer US Dollar Index (DXY), which briefly dipped below the 100 mark.