CPI Data Analysis and Market Outlook
In the short term, particularly on the monthly time frame, the recent CPI data appears somewhat unfavorable. However, it seems the market has already priced in this outcome, showing resilience despite the numbers. On a year-over-year basis, CPI remains in line with previous readings, which is a positive sign and suggests inflation is gradually stabilizing.
Overall, the market maintains a bullish structure, and I continue to see strength and optimism in the broader trend.
The latest inflation data also offers insights into the potential direction of interest rates. Based on current indicators, a rate cut by the Federal Reserve appears increasingly likely. We've already observed similar moves from central banks in China and the UK, signaling a global shift toward easing monetary policy.
Adding to the bullish sentiment, Wall Street has extended its rally, supported by easing tensions in the U.S.-China trade relationship and softer inflation data, both of which have significantly boosted investors confidence.
(This is not a financial advice)
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