According to the latest data released by the U.S. Bureau of Labor Statistics, the U.S. unadjusted CPI rose 3.7% year over year in September, above market expectations of 3.6% and the previous reading of 3.4%, marking its highest level since May this year. Core CPI rose 0.3% month over month on a seasonally adjusted basis, also exceeding expectations of 0.2%. Meanwhile, September core CPI climbed to 2.6% year over year, indicating that underlying inflationary pressures remain relatively persistent.
From a technical and macro-expectations perspective, the broad-based rebound in inflation was driven mainly by energy inflation rising to 20.4%, while food inflation fell to 2.5%, highlighting a clear divergence between components. Although bets on a near-term rate hike picked up somewhat after the data was released, overall inflation remains within a manageable range, and the market is gradually completing its repricing of hawkish expectations and the release of related pressure.
In response, traditional financial markets quickly underwent a technical repricing. The U.S. Dollar Index briefly climbed to around 102.52, while spot gold faced rapid profit-taking and retreated to the support area around $4,129.6 per ounce. The decline in short-term interest rate futures reflects traders digesting the tightening premium, but it also creates a liquidity window for safe-haven funds to seek out higher-beta assets again.
For crypto markets, the release of inflation data often means that near-term uncertainty has been cleared. With $BTC and major assets showing resilient support structures, the concentrated release of macro headwinds may instead establish a solid accumulation zone for risk assets, leaving room for an upside breakout as liquidity is reconfigured. 🚀
#CPIWatch #Inflation #CryptoMarket
From a technical and macro-expectations perspective, the broad-based rebound in inflation was driven mainly by energy inflation rising to 20.4%, while food inflation fell to 2.5%, highlighting a clear divergence between components. Although bets on a near-term rate hike picked up somewhat after the data was released, overall inflation remains within a manageable range, and the market is gradually completing its repricing of hawkish expectations and the release of related pressure.
In response, traditional financial markets quickly underwent a technical repricing. The U.S. Dollar Index briefly climbed to around 102.52, while spot gold faced rapid profit-taking and retreated to the support area around $4,129.6 per ounce. The decline in short-term interest rate futures reflects traders digesting the tightening premium, but it also creates a liquidity window for safe-haven funds to seek out higher-beta assets again.
For crypto markets, the release of inflation data often means that near-term uncertainty has been cleared. With $BTC and major assets showing resilient support structures, the concentrated release of macro headwinds may instead establish a solid accumulation zone for risk assets, leaving room for an upside breakout as liquidity is reconfigured. 🚀
#CPIWatch #Inflation #CryptoMarket