US CPI UPDATES: The global tradition and digital asset markets are reacting in accordance with the much awaited Consumer Price Index (CPI) data. The yet to be released CPI data will determine whether the Federal Reserve goes in for further tightening of monetary policy.
How’re Global Markets Reacting?
As per the data, STOXX Europe 600 index went on to close at 0.9% higher on Monday. However, Asia-Pacific markets depicted some mixed signals on Tuesday. Japan set positive sentiments as it announced the nomination of Kazuo Ueda as the new Bank of Japanese governor.
On the other hand, the U.S. stock futures registered a decline as investors looks ahead to the crucial inflation data. A huge wave of inflation has kept investors dubious regarding future events.
However, the global digital asset market turned green just a few hours before of release of CPI data. The cumulative market cap is up by 1.5% over the past 24 hours. It now stands at $1.01 trillion. The biggest cryptos like Bitcoin (BTC)Ethereum (ETH) price registered a marginal recovery in the same period.
CPI Data To Spike?
As per experts, banks are expecting the US CPI data to be in the range of 5.8% to 6.7% keeping the median of 6.2%. It is being calculated that if the inflation rate comes out to be at 5.8% then it would mark the 7th straight monthly decline. This positive outcome will motivate the investors to push money into the markets.
Meanwhile, If the inflation rate turns out to be 6.7%, then it would mark its first ever surge since July 2022.
As per the forecast, the CPI data is expected to climb 0.4% in the month of January. This surge can mark the largest spike in the last three months. It will be supported by higher gas prices and persistent food inflation.
Dow Jones inducted poll suggests that the CPI rate will be up by 0.4% compared with the prior month. While it is 6.2% higher than January 2022.
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