Tonight's CPI data release will be a key catalyst for market trends. Last week's non-farm payroll data was slightly below expectations, indicating a stabilizing job market, which has shifted the Federal Reserve's focus further towards inflation trends. If the CPI exceeds expectations (such as 3.0% or above), the Federal Reserve may delay interest rate cuts or even take a more hawkish stance, considering maintaining or slightly adjusting interest rates to curb inflation risks. This scenario could put some pressure on the stock market and the cryptocurrency market.
Conversely, if the CPI is below 2.8%, the market will once again raise expectations for interest rate cuts, which typically stimulates further increases in the stock market and the cryptocurrency market. This is because interest rate cuts usually mean lower borrowing costs and higher market liquidity, which is favorable for risk assets (including cryptocurrencies).
