U.S. June CPI data to be released soon
The U.S. Consumer Price Index (CPI) data for June will be released at 20:30 Taiwan time tonight (July 11). According to market expectations, the U.S. CPI data for June is expected to fall to 3.1%, lower than 3.3% in May. .
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Additionally, core CPI growth is expected to remain at 3.4% year-over-year in June. These data indicate that inflationary pressures have eased and may have an important impact on the Federal Reserve's decision on whether to cut interest rates in the second half of this year.
Chances of rate cut rising in September
The CPI data comes after last week's labor force report, which showed a cooling job market with fewer job openings and slower wage growth, suggesting inflationary pressures are easing.
QCP Capital said that if the upcoming CPI data continues this trend, it may become the last piece of the puzzle to confirm the US Federal Reserve's transition to accommodative policies. They expect that the weak CPI data will further strengthen the Fed's policy in September and December. tendency to cut interest rates at the meeting.
Bloomberg economists Anna Wong, Chris Collins and Stuart Paul predict that the June CPI report will show "very good" data, laying the foundation for the Federal Reserve to start cutting interest rates in September.
Market trends at once
The cryptocurrency market is particularly sensitive to U.S. CPI inflation data. Although the market is betting that the Federal Reserve may cut interest rates in September, if the U.S. CPI data released tonight is higher than expected, it may suppress the overall market sentiment and drag down the recent trend. Markets continued to fall after weeks of sluggishness.
On the contrary, if it is in line with or better than the forecast, it may lead to a market rebound. Therefore, investors should be fully prepared before the data is released tonight to prevent losses in the high-risk positions they hold.
In addition to macroeconomic data, the market is also paying attention to a large number of S-1 applications for Ethereum ($ETH) spot ETFs. If the Ethereum spot ETFs are approved by the U.S. Securities and Exchange Commission (SEC) and start trading, it may attract a large amount of funds to return to the market. , further driving the cryptocurrency market upward.
Against this background, investors should pay close attention to the upcoming CPI data and the policy trends of the Federal Reserve and SEC.
