After the release of the CPI data, the market's expectations for interest rate cuts have been somewhat 'adjusted'.
Due to the time lag in the release of U.S. inflation data, the macro impact on the same day is relatively limited.
Although the Consumer Price Index (CPI) data released the previous day was below expectations, it did not trigger a new surge in cryptocurrency, and the market's focus has shifted to the Producer Price Index (PPI) data set to be released on May 15.
According to analysis from trading firm QCP Capital, the Federal Reserve's hawkish policies dominate market expectations. The market has gradually ruled out the favorable factor for risk assets of an interest rate cut in the first half of 2025.
In their latest announcement, QCP stated: 'The U.S. CPI data was below expectations, alleviating market concerns about inflation and further strengthening expectations for interest rate cuts.' However, they also mentioned:
According to CME Group's FedWatch tool, the market anticipates that the Federal Reserve will make a decision to cut interest rates at the September meeting.
Additionally, QCP pointed out: 'The market pricing has also been adjusted accordingly, with expectations now for two rate cuts in 2025, compared to four cuts expected a month ago.'
