The U.S. dollar is hovering near a two-month peak as expectations for a Federal Reserve interest rate cut in November fluctuate ahead of key inflation data. Recent market analysis indicates a significant shift in the odds of a rate cut, with a 20% chance of no cut in November, up from 0% just a week ago. Traders are currently pricing in an 88% probability of a 25 basis point cut, reflecting a notable increase from approximately 50% a month prior. Following the release of inflation data, expectations for a pause in rate cuts have diminished, with the likelihood of a rate hold dropping to 11%. The dollar has also seen a rise against the Japanese yen, reaching a 10-week high, although it has experienced some fluctuations as traders react to labor market and inflation indicators. Overall, the market sentiment appears to be leaning towards a quarter-point cut at the Fed's upcoming meetings in November and December.