The U.S. Labor Department released the consumer price index (CPI) report on Tuesday. Although inflation increased in February year-over-year, the rise was expected, and the annual inflation rate for all items was 6%. The cooling inflation has eased some concerns, but fears of financial contagion have spread. Market strategists are further anticipating the U.S. central bank’s decision regarding the federal funds rate.
In February, inflation was consistent with expectations, with the consumer price index (CPI) increasing by 0.4% last month, equating to a 6% annual pace, according to the latest report from the U.S. Bureau of Labor Statistics. “Over the last 12 months, the all-items index increased by 6% before seasonal adjustment,” the CPI report states. “The index for shelter was the primary contributor to the monthly all-items increase, accounting for over 70% of the rise, while the indexes for food, recreation, and household furnishings and operations also contributed.”
The overall sentiment of the equity market has improved as three of the four U.S. benchmark stock indexes, except for the Russell 2000, saw gains. However, on Monday, three of the four benchmark indexes were down, except for the Nasdaq Composite. Additionally, Monday marked the largest three-day decline in the two-year Treasury yield since “Black Monday” in 1987. However, on Tuesday, following the CPI report, the two-year Treasury yield rebounded.
According to Kevin Cummins, chief U.S. economist at Natwest Markets, although consumer inflation has decreased, it did not significantly impact the market. “As far as how important we thought this one [CPI] was going to be, it definitely now is not nearly as much of a market mover, given the backdrop,” Cummins stated in an interview with CNBC. The Natwest Markets analyst also anticipates that the Fed will not raise the federal funds rate in March. While equity markets showed some improvement after the Labor Department’s CPI report was released, precious metals like gold and silver experienced a small dip at 9:00 a.m. (ET) on Tuesday.
The day prior, on Monday, the price of gold rose by 2%, and the cost of silver per ounce increased by 6% against the U.S. dollar. However, according to the New York Spot Price, both precious metals experienced a decline at 9:00 a.m. on Tuesday, with gold falling by 0.80% and silver decreasing by 0.71%. Conversely, cryptocurrencies saw a significant rebound, with the global crypto market cap increasing by 11.17% to $1.13 trillion. Bitcoin (BTC) rose by 14.72% above the $26,000 per unit zone, and the second-leading crypto asset, ethereum (ETH), spiked 8.43% higher to $1,744 per ether.
What do you think will be the U.S. central bank’s decision regarding the federal funds rate, and how do you think it will affect the overall economy and financial markets? Share your thoughts in the comments below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
SEC Risks Violating Admin Procedure Act by Rejecting Spot Bitcoin ETFs, Says Grayscale
Grayscale Investments' CEO explains that the U.S. Securities and Exchange Commission (SEC) could potentially violate the Administrative Procedure Act by not approving a spot bitcoin exchange-traded fund (ETF). SEC Approving Spot Bitcoin ETF Is 'a Matter of When and Not ... read more.
The U.S. Labor Department released the consumer price index (CPI) report on Tuesday. Although inflation increased in February year-over-year, the rise was expected, and the annual inflation rate for all items was 6%. The cooling inflation has eased some concerns, but fears of financial contagion have spread. Market strategists are further anticipating the U.S. central bank’s decision regarding the federal funds rate.
In February, inflation was consistent with expectations, with the consumer price index (CPI) increasing by 0.4% last month, equating to a 6% annual pace, according to the latest report from the U.S. Bureau of Labor Statistics. “Over the last 12 months, the all-items index increased by 6% before seasonal adjustment,” the CPI report states. “The index for shelter was the primary contributor to the monthly all-items increase, accounting for over 70% of the rise, while the indexes for food, recreation, and household furnishings and operations also contributed.”
The overall sentiment of the equity market has improved as three of the four U.S. benchmark stock indexes, except for the Russell 2000, saw gains. However, on Monday, three of the four benchmark indexes were down, except for the Nasdaq Composite. Additionally, Monday marked the largest three-day decline in the two-year Treasury yield since “Black Monday” in 1987. However, on Tuesday, following the CPI report, the two-year Treasury yield rebounded.
According to Kevin Cummins, chief U.S. economist at Natwest Markets, although consumer inflation has decreased, it did not significantly impact the market. “As far as how important we thought this one [CPI] was going to be, it definitely now is not nearly as much of a market mover, given the backdrop,” Cummins stated in an interview with CNBC. The Natwest Markets analyst also anticipates that the Fed will not raise the federal funds rate in March. While equity markets showed some improvement after the Labor Department’s CPI report was released, precious metals like gold and silver experienced a small dip at 9:00 a.m. (ET) on Tuesday.
The day prior, on Monday, the price of gold rose by 2%, and the cost of silver per ounce increased by 6% against the U.S. dollar. However, according to the New York Spot Price, both precious metals experienced a decline at 9:00 a.m. on Tuesday, with gold falling by 0.80% and silver decreasing by 0.71%. Conversely, cryptocurrencies saw a significant rebound, with the global crypto market cap increasing by 11.17% to $1.13 trillion. Bitcoin (BTC) rose by 14.72% above the $26,000 per unit zone, and the second-leading crypto asset, ethereum (ETH), spiked 8.43% higher to $1,744 per ether.
What do you think will be the U.S. central bank’s decision regarding the federal funds rate, and how do you think it will affect the overall economy and financial markets? Share your thoughts in the comments below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Ripple CEO: SEC Lawsuit Over XRP 'Has Gone Exceedingly Well'
The CEO of Ripple Labs says that the lawsuit brought by the U.S. Securities and Exchange Commission (SEC) against him and his company over XRP "has gone exceedingly well." He stressed: "This case is important, not just for Ripple, it’s ... read more.
Litecoin rose by as much as 15% in Tuesday’s session, as markets reacted to the latest inflation report from the United States. Figures from the monthly Consumer Price Index showed that inflation has fallen to 6% in February, down from 6.4%. Dogecoin was also higher on the news, extending recent gains.
Litecoin (LTC) was once again in the green, as prices of the token rose above $80.00 on Tuesday.
Following a low of $75.20 to start the week, LTC/USD surged to an intraday peak of $86.34 earlier today.
As a result of the move, litecoin has risen to a seven-day high, breaking out of a ceiling at $85.00 in the process.
Overall, LTC is up nearly $20.00 in the last four days, since dropping to a bottom at $65.39 on Saturday.
The latest rally in price has pushed the 14-day relative strength index (RSI) to a reading of 49.53, which is its highest point since March 2.
This is marginally above a ceiling at 48.00, and should price strength remain beyond this point, LTC bulls will likely attempt to reach $90.00.
In addition to LTC, dogecoin (DOGE) also extended recent gains, with the meme coin climbing for a fifth straight day.
DOGE/USD has risen to an intraday high of $0.07492 earlier on Tuesday, which comes a day after trading at a low of $0.06866.
This rally comes as dogecoin broke out of a recent resistance level at $0.0730, with the RSI also climbing above a ceiling of its own.
At the time of writing, price strength is tracking at 47.15, which is well above the aforementioned ceiling at 45.00.
In addition to this, the 10-day (red) moving average is now firmly in an uptrend, with a ceiling of $0.08000 a possible target for bulls.
Price strength is closing in on a ceiling at 50.00. However, should it overcome this point, DOGE could reach its intended target.
Register your email here to get weekly price analysis updates sent to your inbox:
Will this uptrend continue for the remainder of the week? Let us know your thoughts in the comments.
Eliman was previously a director of a London-based brokerage, whilst also an online trading educator. Currently, he commentates on various asset classes, including Crypto, Stocks and FX, whilst also a startup founder.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Central Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year
The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.
Source From : News