• The US Dollar trades overall in the green against the G10 basket of currencies
• Traders are sending US Treasury rates higher with US CPI data set to be issued on Thursday. 
• The US Dollar Index trades above 102.50 and flirts with a break above 103.00.

The US Dollar (USD) rallies again this week, with traders sending US Treasury rates higher ahead of the United States (US) Consumer Price Index (CPI) data for September. Higher US rates make the US Dollar a favored carry currency again, with several traders and speculators more than happy to park their money under the Greenback and get some yield return in the process. It reveals part of the conviction among traders that the US CPI report might see the disinflationary process from recent months stall or even turn around and head back into an increase in inflation. 

The economic calendar is thus picking up steam, with the heavy-weight US CPI release on Thursday. Add the weekly Jobless Claims, and markets are bound to have some volatility. The release of the Federal Open Market Committee (FOMC) Minutes of the September meeting on Wednesday showed that a large majority of the Federal Reserve (Fed) voters were in favor of a bigger 50 basis points (bps) rate cut, while a smaller amount voted in favor of a more gradual approach.