A second large pool of macroeconomic data from the U.S. has been released.
- Basic Consumer Price Index (y/y) (October): 2.8% against a forecast of 2.8% and a previous value of 2.7%.
- Consumer Price Index (y/y) (October): 2.3% against a forecast of 2.3% and a previous value of 2.1%.
For risky asset markets, all this is positive for the future and even, as can be seen, at the moment.
Of importance for macroeconomics and the crypto market:
1. The Consumer Price Index has increased, but (!) within the forecast. That is, inflation is still above the Fed's target level of 2%, but it is under control. Meanwhile, the month-over-month index figures are stable, not increased, and within the forecast. This is even more important. It indicates the absence of rising inflationary pressure at the moment.
2. Stable monthly values (0.2%-0.3%) allow us to predict that further monetary policy easing will not lead to a renewed acceleration of inflation. The data signals a reduction in the risks of price shocks.
3. Following the publication of this data, gold and silver sharply declined. As inflation does not accelerate, the market begins to factor in a longer-term perspective of monetary policy easing, which reduces the attractiveness of precious metals as a safe-haven asset. It increases the attractiveness of risky assets. #BTC on this data shows further growth and has risen above $95,000, breaking through the significant level of $95,665. Interestingly, the stock market responded with a correction.
