Reserve Dollar

Bank AI

Reserve

The U.S. Bureau of Labor Statistics announced the <a href="https://coingape.com/glossary/consumer-price-index-cpi/" target="_blank" rel="noopener">consumer price index</a> (CPI) inflation data for November today. The CPI inflation eased to 3.1%, the lowest in the last five months. The crypto market will recover from the recent selloff but traders are likely to await the Fed rate decision. The annual inflation rate came in at 3.2% for October, slowing from 3.7%. 
<h2 id="market-recovery-in-sight-as-cpi-inflation-cools">Market Recovery In Sight As CPI Inflation Cools</h2> 
Wall Street estimated US CPI inflation cooling again, but core CPI inflation is expected to show some stickiness, with the annual core rate seen steady at 4% and the monthly rate seen rising to 0.3% from 0.2%. 
Goldman Sachs, Nomura, Citadel, Barclays, Bank of America, RBC, and Citi expected CPI to come in line with consensus at 3.1%. Whereas, JPMorgan, Morgan Stanley, Visa, BMO, and Wells Fargo predicted CPI at 3%. However, UBS and CIBS are expecting CPI to remain stagnant at 3.2% for November. 
The cooling CPI inflation will give the U.S. Federal Reserve room to consider lower interest rates in the months ahead. The CME FedWatch Tool&nbsp;<a rel="nofollow" href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html" target="_blank">shows</a> a 98.4% probability of announcing a pause at the next FOMC meeting on Wednesday. 
Meanwhile, the US dollar index (<a rel="nofollow" href="https://www.marketwatch.com/investing/index/dxy" target="_blank">DXY</a>) also fell under 104. It is now moving near 103.75, which could bring a rebound in BTC price. 
“Short-term inflation expectations have come down sharply on lower energy prices in recent months. That makes more room for the Fed to consider rate cuts as downside risks for activity and upside inflation risks become more balanced, said Bloomberg economists Anna Wong and Stuart Paul. 
Also Read: <a title="XRP Lawyer John Deaton Lashes Out At Sen Elizabeth Warren &amp; SEC Chair Gary Gensler" href="https://coingape.com/xrp-lawyer-john-deaton-lashes-out-at-sen-elizabeth-warren-sec-chair-gary-gensler/" target="_blank" rel="bookmark noopener">XRP Lawyer John Deaton Lashes Out At Sen Elizabeth Warren &amp; SEC Chair Gary Gensler</a> 
<h2 id="bitcoin-and-other-crypto-price-action-after-cpi">Bitcoin and Other Crypto Price Action After CPI</h2> 
<a href="https://coingape.com/bitcoin-btc-cme-gap-at-39700-is-it-good-or-bad-news-for-investors/" target="_blank" rel="noopener">CoinGape warned</a> about a potential upcoming crypto market correction to $40k this week citing factors including Bitcoin CME Gap. 
Analysts expect a continuation in BTC price upwards as a pullback was necessary for confirming further rally to $50k and potentially to $60k. Bitcoin open interests (OI) on CME and Binance are rising again, hinting at potential recovery. However, traders are expected to wait until Fed rate decision for further guidance. 
<a href="https://coingape.com/price/bitcoin" target="_blank" rel="noopener">BTC price</a> is currently trading at $41,771, down more than 1% in the last 24 hours as traders await PCI data. The 24-hour low and high are $40,234 and $42,470, respectively. Furthermore, the trading volumes has increased by 20% in the past 24 hours, indicating interest among traders. 
Also Read: <a title="Breaking: Cathie Wood’s Ark Invest Sells $2M Coinbase &amp; $13M GBTC Shares, Buys Meta" href="https://coingape.com/breaking-cathie-woods-ark-invest-sells-2m-coinbase-13m-gbtc-shares-buys-meta/" target="_blank" rel="bookmark noopener">Cathie Wood’s Ark Invest Sells $2M Coinbase &amp; $13M GBTC Shares, Buys Meta</a> 
The post <a href="https://coingape.com/wall-street-sees-us-cpi-inflation-easing-3-1-bitcoin-crypto-market-rebound/">US CPI Inflation Eases To 3.1%, Room For Federal Reserve To Pause Rates</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

US CPI Inflation Eases To 3.1%, Room For Federal Reserve To Pause Rates

Table of Contents

Coingape News Media

Other articles published on Dec 12, 2023

GAMEE | An Exciting New Chapter for GMEE: Now on Bitget, Coinstore, and BTSE!

KYC Controversy: Warren’s Bill and Non-Custodial Software

Astar launches NFT campaign to celebrate mainnet launch

US Annual CPI Declines To 3.1%! Bitcoin Price Rebounds From $40K Low

Google Bard predicts Avalanche price for the start of 2024

Greenidge Generation Holdings and Infinite Reality Announce New Partnership and Equity Swap

Join our free newsletter for daily crypto updates!