Investors Await U.S. CPI Data to Gauge Fed’s Interest Rate Stance

• Inflation statistics may set the tone for the Fed’s future position with their policy rate plans.
• The Federal Reserve uses the CPI as a key indicator of inflationary pressure in the U.S.

On Thursday, July 11, the crypto market players are anticipating the publication of the U.S. Consumer Price Index (CPI) statistics with great anticipation. Crucial inflation statistics may set the tone for the Fed’s future position with their policy rate plans, therefore the whole financial market will closely monitor it.

Everyone in the financial industry, including those involved in the cryptocurrency market, is hoping for a respite from Thursday’s inflation report, according to market estimates. The US consumer price index (CPI) is anticipated to reveal a cooling of inflation to 3.1% in June from 3.3% in May. After being constant in May, the CPI inflation is anticipated to see a little gain of 0.1% on a month-over-month (MoM) basis.

Key Indicator of Inflationary Pressure

Inflation expectations are falling, therefore investors are putting their money on the Federal Reserve taking a more dovish approach. The latest U.S. jobs report also seems to have boosted market expectations for a rate drop in September from the Federal Reserve.

Additionally, the U.S. PPI data, which is another important piece of inflation data for this week, will be provided by the Labor Department after the U.S. CPI results. Investors will be keeping a careful eye on both of these inflation indicators as they may provide clues about how the market will move in the future.

Moreover, the Federal Reserve uses the Consumer Price Index (CPI) as a key indicator of inflationary pressure in the United States. On July 10, Bitcoin’s (BTC) resurgence propelled the entire crypto market to a remarkable bounce, despite selling pressures from the German government and Mt. Gox. Bitcoin surged roughly 4.20% to hit the $59,500 zone, reflecting a subsequent upward trend after the prolonged bearish momentum.

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