XT Research Institute: The US June unadjusted CPI annual rate is more concerned by the market

Odaily News XT Research Institute reminds that at 20:30 on July 12, 2024, Singapore time, the U.S. Department of Labor will announce: the U.S. June unadjusted CPI annual rate and the U.S. June seasonally adjusted CPI monthly rate. The U.S. Consumer Price Index (CPI) is an indicator that measures changes in the price level of a basket of goods and services, and is used to reflect inflation. CPI data directly affects the Fed's monetary policy decisions. If CPI data continues to show high inflation, the Fed may raise interest rates or reduce asset purchases, thereby reducing market liquidity, which may put pressure on high-risk assets including Bitcoin. The U.S. CPI data has a significant impact on the Bitcoin market through multiple channels such as inflation expectations, the value of the U.S. dollar, the Fed's policies, and market sentiment. Investors need to consider these factors comprehensively to understand the short-term and long-term impacts that CPI data may have on the Bitcoin market. If the published value is less than the expected value, for example: the U.S. June unadjusted CPI annual rate published value is 3.0% < 3.1%, and the U.S. June seasonally adjusted CPI monthly rate published value is 0.0% < expected value 0.1%. It is bearish for the U.S. dollar and bullish for non-U.S. currencies. Negative for Treasury yields. Positive for rate cut expectations, negative for rate hike expectations. Positive for risk markets and virtual currency markets. (Note: Related analysis is not intended as investment advice)