đ„CPI and PPI in August almost met expectations, gold broke the peak, S&P 500 had its 4th consecutive green day
đ¶PPI in August:
+PPI Y/Y was 1.7%, down from +2.1% last month but still higher than expected (expected +1.8%)
+ PPI M/M +0.2%, up only 0% from last month, higher than expected (expected +0.1%).
+ Core PPI was +2.4% Y/Y and +0.3% M/M respectively, not much different from expectations.
đ¶About CPI in August:
Healine CPI +2.5% Y/Y equal to expectations (down sharply from +2.9% last month).
Importantly, Core CPI:
+ Increased +3.2% Y/Y, unchanged from last month and equal to forecast -> very good.
+ But +0.3% M/M increase (expectation is +0.2%) -> this has made the market slightly disappointed.
đ¶CPI and PPI both showed the lowest numbers since February 2021 -> the market believes that the inflation storm has come to an end. Now the labor market is slightly weak (but still has to be higher than the recession number) and it's done.
đ¶The market has gradually accepted that the first interest rate cut will only be 25bsp, but from now until the end of the year, it still has to cut 125bsp (meaning the next 2 meetings will reduce 50bsp).
đ¶DXY continues to fall, S&P 500 is green for the 4th consecutive day, only about 1.3% away from the all-time high. Gold has gone ahead, breaking the all-time high and is sitting comfortably at $2542/ounce.
đ¶Only 1 week left until the next FOMC meeting. Likely BTC will continue to rise and sell the news after the cut rates are announced.
