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"The data is relatively upbeat in the U.S."
- Omar Esiner, a strategist at Commonwealth Foreign Exchange
U.S. consumer prices decreased slightly for the first time in four months in October, giving the Federal Reserve opportunity to ease monetary policy in case the economy falters. The prices dropped 0.1 percent, compared to September, said the Labor Department on Wednesday.
"The inflation outlook is pretty benign," said Guy LeBas, chief fixed-income strategist at Janney Montgomery Scott LLC in Philadelphia. "The fact that recent higher readings are moderating certainly speaks well to the Fed's accommodative policy."
Economists believe the U.S. economy is gaining steam since the end of the summer. "The data is relatively upbeat in the U.S., which contrasts with the situation in Europe," said Omar Esiner, a strategist at Commonwealth Foreign Exchange in Washington.