You are currently viewing Amillex Daily Market Commentary | Cooling US CPI strengthens expectations for a policy turning point; risk assets recover and rebound, while precious metals oscillate at high levels. 

Amillex Daily Market Commentary | Cooling US CPI strengthens expectations for a policy turning point; risk assets recover and rebound, while precious metals oscillate at high levels. 

December 19, 2025. The US Consumer Price Index (CPI) for November, released on Thursday, rose 2.7% year-on-year, significantly lower than the market expectation of 3.1%. This has refocused market attention on the future path of interest rate cuts. Influenced by this data, the US Dollar Index briefly dropped toward 98 before rebounding in a volatile fashion. Investor risk appetite saw a periodic recovery: the three major US stock indices rebounded across the board; gold and silver fluctuated near historical highs as easing expectations clashed with profit-taking; crude oil remained at low levels; and Bitcoin pulled back after an initial surge. The main market narrative is centered on the tug-of-war between whether the decline in inflation is sufficient to drive further clarity in the policy path and the sustainability of the rebound in risk assets. 

Market Performance and Fundamental Analysis by Asset Class 

1. US Stock Market: CPI boosts easing expectations; tech stocks lead index recovery. 

Index Performance:  

  • The Dow Jones Industrial Average rose slightly by about 0.1%, closing near 47,950 points, showing relatively steady performance.  
  • The S&P 500 Index rose about 0.8%, temporarily ending a previous four-session losing streak.  
  • The Nasdaq Index rose about 1.4%, driven by strong performance in tech earnings, becoming the primary driver of this rebound.  

Stock Focus: Micron Technology (MU) shares surged approximately 10.2% at the close. Strong financial results and robust demand for AI storage drove the stock price significantly higher, making it one of the core drivers of the market rebound.  

Driving Factors: Improvements in corporate earnings and recovery trades in the tech sector jointly boosted market risk appetite. Investors are now watching upcoming employment data and core PCE to judge the sustainability of the inflation trend. 

2. Forex Market: US Dollar weakens then stabilizes; non-US currencies show divergent performance. 

  • The US Dollar Index (DXY) plunged shortly after the CPI release, briefly approaching the 98.0 level, but later recovered some ground during consolidation.  
  • EUR/USD fluctuated around the 1.170-1.180 range.  
  • USD/JPY maintained high-level volatility after a slight decline, supported by Japanese policy expectations.  
  • GBP/USD fluctuated amid uncertainty regarding Bank of England policy.  

Driving Logic: Cooling CPI weakened the short-term advantage of the US dollar, but downside potential remains limited due to safe-haven demand and expectations of tight dollar liquidity. 

3. Precious Metals and Commodities: Precious metals oscillate at high levels; crude oil lingers at lows.  

Precious Metals:  

  • Spot gold briefly surged before consolidating at high levels. The conflict between positive CPI news and recovering risk appetite caused market divergence.  
  • Spot silver faced short-term pressure, testing the support zone near $65 per ounce, though the medium-term supply-demand structure remains tight.  

Commodities:  

  • WTI crude oil remained in a low-level range, fluctuating around $56 per barrel. Expectations of oversupply suppressed the strength of any rebound. 

4. Crypto Assets: Bitcoin pulls back after a surge; high-level volatility continues without a clear breakout.  

  • Bitcoin (BTC) briefly broke toward the $90,000 psychological barrier before pulling back for consolidation.  
  • Ethereum (ETH) similarly rose and then fell amid a mix of macro easing expectations and profit-taking, maintaining a volatile trend. 

5. Today’s Focus 

  • Bank of Japan (BoJ) Interest Rate Decision (Rate hike expected) 
  • UK November Retail Sales