🚨 CPI IS OUT — AND THE FED JUST GOT A NEW PROBLEM
The headline numbers look calm at first glance:
📊 CPI YoY: 3.4% — in line
📊 CPI MoM: 0.4% — in line
⚠️ Core CPI MoM: 0.3% — hotter than expected
That last number is what the market needs to watch.
Headline inflation didn't surprise, but underlying price pressure is still proving sticky. After yesterday's PPI data, this isn't exactly the inflation report the bulls wanted to see.
Now the big question shifts back to the Fed:
Can they justify a September cut if inflation remains this stubborn?
A hotter core reading could keep yields and the dollar supported while putting pressure on risk assets.
My takeaway: don't chase the first CPI candle. Watch the Fed expectations, Treasury yields and DXY reaction first.
The next move could be violent.
👀
Fed cut, hold, or surprise hike? What's your trade?
#CPIWatch
The headline numbers look calm at first glance:
📊 CPI YoY: 3.4% — in line
📊 CPI MoM: 0.4% — in line
⚠️ Core CPI MoM: 0.3% — hotter than expected
That last number is what the market needs to watch.
Headline inflation didn't surprise, but underlying price pressure is still proving sticky. After yesterday's PPI data, this isn't exactly the inflation report the bulls wanted to see.
Now the big question shifts back to the Fed:
Can they justify a September cut if inflation remains this stubborn?
A hotter core reading could keep yields and the dollar supported while putting pressure on risk assets.
My takeaway: don't chase the first CPI candle. Watch the Fed expectations, Treasury yields and DXY reaction first.
The next move could be violent.
👀
Fed cut, hold, or surprise hike? What's your trade?
#CPIWatch
