The latest data released by the EU’s statistical office shows the final Eurozone CPI figures for August. The data indicates that the Eurozone’s August CPI annual rate final value actually came in at 3.2%, below the market’s prior expectation of 3.3%. Meanwhile, the August CPI month-on-month final value was 0.4%, fully matching market expectations and in line with the previous figure. The inflation data showed an unexpectedly cooling trend, giving the European Central Bank more room to maneuver for its future monetary policy.
From a macro technical perspective, the decline in the inflation annual rate to 3.2% suggests that price pressures in the Eurozone are steadily easing. Although Norwegian gas operator Gassco increased the amount of supply disruption for September 18–19 to 55.1 million cubic meters, raising short-term concerns on the energy front, the overall downward trend in inflation has not been disrupted, and the previously feared risk of a second-round inflationary surge has been further discredited.
This data is directly positive for global risk assets. The easing of Eurozone inflation strengthens the market’s expectations that the ECB will continue to adopt a more accommodative stance in the future, limiting the upside space for yields on European sovereign bonds. The global liquidity environment is expected to remain marginally loose, and the upward momentum of the U.S. dollar index is also somewhat constrained, providing support for commodities and equity markets.
As for the crypto market, $BTC and the technical setup of major risk assets are currently in a buildup phase. The continued slowdown in macro inflation is providing rebound momentum for crypto assets from the liquidity base layer. As the ECB’s rate-cut path becomes clearer, off-exchange capital is expected to flow back into Risk-on assets; in the short term, the crypto market may seize the opportunity to launch a new round of upside breakout tests.📈
#EurozoneCPI #Inflation #MacroEconomics
From a macro technical perspective, the decline in the inflation annual rate to 3.2% suggests that price pressures in the Eurozone are steadily easing. Although Norwegian gas operator Gassco increased the amount of supply disruption for September 18–19 to 55.1 million cubic meters, raising short-term concerns on the energy front, the overall downward trend in inflation has not been disrupted, and the previously feared risk of a second-round inflationary surge has been further discredited.
This data is directly positive for global risk assets. The easing of Eurozone inflation strengthens the market’s expectations that the ECB will continue to adopt a more accommodative stance in the future, limiting the upside space for yields on European sovereign bonds. The global liquidity environment is expected to remain marginally loose, and the upward momentum of the U.S. dollar index is also somewhat constrained, providing support for commodities and equity markets.
As for the crypto market, $BTC and the technical setup of major risk assets are currently in a buildup phase. The continued slowdown in macro inflation is providing rebound momentum for crypto assets from the liquidity base layer. As the ECB’s rate-cut path becomes clearer, off-exchange capital is expected to flow back into Risk-on assets; in the short term, the crypto market may seize the opportunity to launch a new round of upside breakout tests.📈
#EurozoneCPI #Inflation #MacroEconomics