According to a new report from Bybit, upcoming inflation data in the U.S. is set to have a significant impact on global financial markets.
Key Inflation Data
The report examines the upcoming release of the Producer Price Index (PPI) on September 11 and the Consumer Price Index (CPI) on September 12, which are expected to play a crucial role in shaping the Federal Reserve's interest rate decision on September 17.
Markets at a Crossroads
Currently, markets are pricing in a 92% probability of a rate cut from 4.5% to 4.25%. Softer inflation readings could further strengthen expectations of additional cuts later this year. Bitcoin remains below its all-time high of $124,500, with softer CPI potentially pushing it toward $135,000.
Asset Implications
Inflation figures will directly impact risk assets, including cryptocurrencies, gold, and growth equities. Falling inflation would give the Fed more flexibility to ease monetary policy, boosting liquidity across asset classes.
Overall, the forthcoming inflation data could act as a catalyst for shifts in the current state of financial markets, impacting the Federal Reserve's decisions.
