This week witnessed a significant event in the financial markets that sparked investor interest. The recently released Producer Price Index (PPI) data came in significantly below expectations.
Producer Price Index Data
The recently released PPI data surprised market participants. Surveys indicated that 64% of respondents expected a 50 basis point cut, while 40% anticipated a 75 basis point reduction. However, the predictions from 100 economists do not signal as positive a scenario as hoped.
Impact of Inflation on Financial Markets
Since August, tariffs have had a clear impact on inflation, reflected in the data emerging since February. The implementation of global rates and the increase in the standard 10% have significantly influenced the market. Meanwhile, the European Central Bank made a slight upward revision in inflation forecasts but did not change interest rates.
Prospects for Cryptocurrencies
Consumer inflation figures were also released, with reported Consumer Price Index (CPI) at 2.9% and Core CPI at 3.1%. The alignment of the reported figures with expectations is highly positive, fostering growth in the cryptocurrency markets. Bitcoin is projected to test levels between $116,000 and $118,000.
Recent PPI and CPI data reflect the current economic situation in the US and create positive expectations in financial markets, particularly in the cryptocurrency sector.
