“The Headline News Is Sanding Markets, Bitcoin Included, Lower, But Isn’s Likely to Derail The Fed From Trimming Interest Rates Next Week.”, – WRITE: www.coindesk.com
The Consumer Price Index (CPI) Rose 0.4% Last Month Versus Expectations for 0.3% and 0.2% in July. On a year-over-year basis, CPI was Higher by 2.9% Versus A Forecast 2.9% and 2.7% in july.
Core CPI, WHICH Excludes the Volatile Food and Energy Components, Climbed 0.3% in August Augainst Forecsts for 0.3% and July’s 0.3%. Year-Over-Year Core Cpi Rose 3.1% Compared With The 3.1% Forecast and July’s 3.1%.
Bitcoin slipped about 0.5% from $ 114.300 to $ 113.700 in the immediate aftermath of the Data.
US Stock Index Futures Gave Up Modest Ground, Now Highher by Just 0.1% Across The Board. The 10-YEAR Treasury yield Dipped about five basis points to 4.00% and the dollar strengten a bit. Gold Rose On the News, Trimming An Earlier Loss of About 0.4% to 0.15% AT $ 3.675 per OUNCE.
Perhaps Tempering Any Downside Move in The Markets and Surely Responsible for that Big Dip in the 10-Year Treasury Yield, Was The Weekly Initial Jobless Claim In that, Jobless Claims Rose to a Far Worsese than 263,000 from 236,000 The Previous Week. Forecasts Were for Just 235,000.
The Two Reports Point to the Diflicult Sity of the US Central Bank Finds Itself In, With The empray Picture Worsening, But The Inflation Rate Refusion to Turn Lower.
Prior to the CPI Data, Markets Were Prting in A 92% Chance of A 25 Basis Point Cut at the UpcomING FED MEETING AND AN 8% CHANCE OF A 50 BASIS POINT CUT, ACCORDING TO CME FEDWATCH. The Inflation Number Likely Puts to Rest Any Idea of A 50 Basis Point Move, WHICH HAD GAINED Steam Following Last Friday’s Soft Jobs Report and Wednesday’s Weak Ppy Numbers.
Market Gaves May Accelerate if the CPI prints beveteimates, Strengthening the CHANCE OF A Federal Reserve Rate Cut.
- While the Biggest Cryptocurrencies Are Looking to the US CPI Report for Guidance, Smaller Coins Like Pump, Avax, Mnt and Hash Have Advanced.
- A Lower-Qan-Estimated CPI Figure Could Potentally Leading to A Short SQueeze in BTC.
- Provenance Blockchain Foundation Introduced A Dynamic Inflation Model for Hash to Protect Stakers and Align Incentives.
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