The release of the US Consumer Price Index (CPI) will take place this Friday, potentially causing high volatility in financial markets, including Bitcoin (BTC).
Data corresponding to September will be available at 12:30 UTC. Annual variation is expected to be 3.1%same as previous registration.
Core inflation excluding food and energy; remains one of the main indicators of inflation behavior. The Federal Reserve System (FED) follows suit.
A weaker-than-expected result could strengthen hopes for more flexible monetary policy, which typically favors assets classified as “risk” such as Bitcoin. On the other hand, values exceeding 3.1% are If this happens, there will be a growing view that interest rates will remain high for a long time.
The report comes amid a federal government shutdown that has furloughed nearly 1 million workers and halted most non-essential services.
Still, the Bureau of Labor Statistics will issue the report under legal mandate, even though it is still affected by the lack of information. this fact Political tensions are combined with the economic need to maintain the distribution of critical data.
Furthermore, the known inflation rate is comparable to September, when the US federal government was not shut down. Next week’s decision will be a different story, as it will theoretically reveal whether the Fed will cut rates. It should be noted that a reduction is likely to be announced, as reported by CriptoNoticias.
As an additional factor, the market is keeping an eye on the next meeting between President Donald Trump and Xi Jinping, scheduled for October 30th in South Korea. bilateral talks Expectations for easing trade tensions have increasedwhich also contributes to optimism in risk assets.