The EU’s statistics office officially released the euro area’s early September inflation data today. The figures show that the initial September CPI year-on-year for the euro area was 3.8%, significantly higher than market expectations of 3.6% and the previous value of 3.20%. On a month-on-month basis, it rose 0.6%, also exceeding expectations of 0.5%.
The inflation rebound was mainly driven by a recovery in energy and service sector prices, while core inflation remained resilient at around 2.2%. Although the data came in above expectations and increased pressure on the ECB’s policy, based on cyclical indicators, there are no signs of inflation spiraling out of control; it more clearly reflects a local structural bottoming pattern.
The FX and fixed-income markets then quickly repriced. The euro briefly stopped falling and stabilized, and expectations for a narrower US-Europe interest-rate differential put pressure on the US dollar index. For risk assets, the full release of rate-hike expectations has instead cleared uncertainty for the market, and the global liquidity environment is approaching a key turning point where bad news has largely been exhausted.
In the crypto market, key assets such as $BTC demonstrated exceptionally strong absorption at critical support levels. As macro negative factors are fully digested by the price action and on-chain positions settle well, the repair in risk appetite may enable capital to flow back into mainstream digital-asset segments. 🚀
#EurozoneCPI #Inflation #CryptoMarket
The inflation rebound was mainly driven by a recovery in energy and service sector prices, while core inflation remained resilient at around 2.2%. Although the data came in above expectations and increased pressure on the ECB’s policy, based on cyclical indicators, there are no signs of inflation spiraling out of control; it more clearly reflects a local structural bottoming pattern.
The FX and fixed-income markets then quickly repriced. The euro briefly stopped falling and stabilized, and expectations for a narrower US-Europe interest-rate differential put pressure on the US dollar index. For risk assets, the full release of rate-hike expectations has instead cleared uncertainty for the market, and the global liquidity environment is approaching a key turning point where bad news has largely been exhausted.
In the crypto market, key assets such as $BTC demonstrated exceptionally strong absorption at critical support levels. As macro negative factors are fully digested by the price action and on-chain positions settle well, the repair in risk appetite may enable capital to flow back into mainstream digital-asset segments. 🚀
#EurozoneCPI #Inflation #CryptoMarket