The rise or fall of inflationary indicators can significantly impact the markets, and the upcoming U.S. inflation data is particularly anticipated.
Key Insights from the Report
The Bybit and FXStreet report highlights several critical aspects concerning the upcoming inflation data. The Producer Price Index (PPI) is expected to be released on September 11, followed by the Consumer Price Index (CPI) on September 12. Current forecasts suggest a high probability of the Federal Reserve reducing the interest rate from 4.5% to 4.25%.
Impact of Inflation on Bitcoin and Equity Markets
The situation with the CPI and PPI indices will directly affect Bitcoin and equity markets. Currently, Bitcoin is priced below its historical maximum of $124,500 reached in August. If the data is favorable, Bitcoin may surpass $120,000 and potentially rise to $135,000 by the end of the year. Conversely, unexpected 'hot' data could trigger a correction below $107,200. Additionally, the S&P 500 is holding above 6,500, aiming for 7,000 if inflation data proves to be encouraging.
Conclusion: Expectations for Inflation Week
The week of inflation data will act as an important catalyst for global markets. A decrease in inflation could give the Federal Reserve the latitude to ease monetary policy, boosting liquidity across markets. On the other hand, stronger-than-expected figures could compel regulators to remain cautious, restraining growth across both traditional and digital assets.
Thus, the inflation data this week could fundamentally alter the landscape of financial markets, with investors keenly focused on the CPI and PPI reports.
