U.S. inflation slowed more than expected in October 2023, with the CPI increasing by 3.2% year-over-year, below September's 3.7% and economists' expectations of 3.3%. This deceleration strengthens the case for the Federal Reserve to pause interest rate hikes, as market probabilities prior to the CPI report suggested an 86% chance of rates remaining unchanged in December and potential rate cuts in the following year. The core CPI also showed a modest increase of 0.2% month-over-month, indicating easing inflation pressures. The Invesco DB USD Index Bullish Fund ETF (UUP) saw a 0.6% drop following the report.