Most recently the market players have been presented with PPI data which is one of the measures of inflation. PPI data for September showed US PPI saw a month-on-month jump of 0.5% in September, better than market expectations of 0.3%.
Following the release of the data, the US dollar index has traded down and is now 0.08% to a trading level of 105.475. Based on the CME FedWatch Tool, the market now expects an 84.2% probability of a halt in policy rate hikes at the end of the year. However, recent comments from Fed officials suggest that the Fed may announce another hike in late 2023.
On the other hand, the crypto market has continued its bearish momentum following the PPI data. At the same time, concerns about the Israel-Hamas conflict were also pressed. These things lead to market concerns about oil prices. Inflation, which is already higher than the Fed's target level, could also continue to rise due to ongoing geopolitical turmoil.
Bitcoin price has decreased by 1.45% to $27,102. In contrast, the price of Ethereum plunged 0.70% to $1,570.39 at the same time. Among other cryptocurrencies, the price of XRP fell 2.04% to $0.4871. Some alternative cryptos also suffered the same fate.
Investors are now focusing on the CPI data that will be released on Thursday, October 12. Both the CPI and PPI data are important economic indicators, which may set the stage for the upcoming Federal Open Market Committee Meeting scheduled for October 31 to November 1.
