Yesterday’s release of US CPI data, which came in higher than expected, increased concerns about continued inflationary pressures and raised expectations for a Fed interest rate hike. Today’s
Yesterday’s release of US CPI data, which came in higher than expected, increased concerns about continued inflationary pressures and raised expectations for a Fed interest rate hike. Today’s US PPI data is also expected to provide further signals to the markets regarding the trajectory of inflation and the Fed’s monetary policy.
Related News: BREAKING! Critical US Inflation Data Released! Here's Bitcoin's (BTC) Initial Reaction!
At this point, if the PPI data comes in above expectations, it could reinforce the expectation that interest rates will remain high for longer, leading to a rise in the dollar and US bond yields, and increasing selling pressure on risky assets like Bitcoin. Conversely, data below expectations could trigger an upward reaction in the Bitcoin price. Therefore, today’s PPI data is an important macroeconomic development that should be closely monitored for its short-term price direction for Bitcoin.
With the market entirely focused on data today, the September figures for the US Producer Price Index (PPI), one of the indicators closely monitored by the Fed when making its decisions, were also released.
Core Producer Price Index (Monthly): Announced 0.7% – Expectation 0.3% – Previous 0.2%
Core Producer Price Index (Annual): Announced 5.0% – Expected 4.4% – Previous 4.6%
Producer Price Index (Monthly): Announced 1.3% – Expected 0.6% – Previous 0.4%
Producer Price Index (Annual): Announced 6.3% – Expected 5.3% – Previous 5.4%
*This is not investment advice.
Continue Reading: BREAKING! US PPI Data Released! What Was Bitcoin’s (BTC) Initial Reaction?
