July CPI: Headline at 2.8%, Core Hits 3.0% YoY
U.S. July CPI came in at 2.8% YoY, with Core CPI (ex-food/energy) hitting 3.0%, its highest level in six months—driven by tariff-driven costs on goods like furniture and apparel.
While headline inflation rose modestly, core pressures remain a concern for the Fed’s 2% target.
Trading Insight:
- Short-term caution: Elevated core CPI may delay expectations for Fed rate cuts—guard your positions accordingly.
- Crypto setup: If price holds above key supports (e.g., BTC ~$120K), defensive long setups could play out. But break below? Consider scaling down and hedging via stablecoins or short-dated puts.
- Options strategy: Elevated volatility makes butterfly spreads or short straddles attractive for defined risk exposure.
Tariffs paused—but is it about data or distraction? What's your call?
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