The Dollar Falls Even After Hot US Inflation Data

Despite the US inflation data coming out higher than expected, the dollar has already fallen back from an 18-month peak.
The CPI in September increased by 3.7% in annual gross terms and 2.6% in the core. The dollar climbed after speculating about rate hikes but soon fell when US Treasury yields declined and the Feds said there was no hurry.
Good news for a currency is never good enough for FX traders. What truly matters is the extent to which they update their expectations.