The U.S. Bureau of Labor Statistics has just released September CPI inflation data, with nearly all key indicators coming in above market expectations. Unadjusted CPI rose 3.7% year over year in September, above expectations of 3.6% and August’s 3.4%, reaching its highest level since May this year. Core CPI also climbed to 2.6% year over year, likewise exceeding expectations of 2.5%.
These figures have dashed the market’s previous optimism that inflation would continue to ease steadily. Energy inflation, in particular, surged to 20.4%, becoming the main driver of the overall rise in prices. The persistence of inflation has forced investors to reassess the Federal Reserve’s future policy path.
Markets reacted swiftly: the U.S. Dollar Index (DXY) rose nearly 40 points in a short time to 102.52, while gold came under pressure, falling nearly $40 to $4,129.6 per ounce. Short-term interest rate futures prices declined, as traders rapidly increased their bets on further Fed rate hikes.
For crypto markets, expectations of tighter macro liquidity often weigh on risk appetite in the short term, potentially fueling a more cautious stance among investors. However, bulls and bears are still fiercely contesting key levels. Whether the market continues its correction or breaks into an independent trend will depend on how much support the flow of funds receives going forward. $BTC
#CPIReport #Inflation #Fed
These figures have dashed the market’s previous optimism that inflation would continue to ease steadily. Energy inflation, in particular, surged to 20.4%, becoming the main driver of the overall rise in prices. The persistence of inflation has forced investors to reassess the Federal Reserve’s future policy path.
Markets reacted swiftly: the U.S. Dollar Index (DXY) rose nearly 40 points in a short time to 102.52, while gold came under pressure, falling nearly $40 to $4,129.6 per ounce. Short-term interest rate futures prices declined, as traders rapidly increased their bets on further Fed rate hikes.
For crypto markets, expectations of tighter macro liquidity often weigh on risk appetite in the short term, potentially fueling a more cautious stance among investors. However, bulls and bears are still fiercely contesting key levels. Whether the market continues its correction or breaks into an independent trend will depend on how much support the flow of funds receives going forward. $BTC
#CPIReport #Inflation #Fed