CPI cools down, increasing the likelihood of a Fed rate cut

Jinshi data news on June 12th, the unadjusted core CPI annual rate in the United States for May recorded 3.4%, lower than the expected level of 3.5%, marking the lowest level since April 2021. Short-term interest rate futures in the United States surged after inflation data was released, with traders expecting an increased possibility of a Fed rate cut.

After the data was released, spot gold rose nearly $12 in the short term, now trading at $2325.5 per ounce. Futures for the three major US stock indexes continued to rise, with Dow futures up by 0.6%, SP 500 index futures up by 0.7%, and Nasdaq futures up by 0.88%.

The yield on two-year US Treasury bonds fell to 4.693%, reaching its lowest level since April 5th.

Interest rate futures currently imply a probability of around 70% for a Fed rate cut before September, while market expectations put the likelihood of a November Fed rate cut of 25 basis points at 100%.

Following the release of CPI data, Bitcoin saw a short-term increase of 1.97% and a daily gain of 3.5%, temporarily trading at $69,212 USD; Ethereum briefly surpassed $3600 USD and is now trading at $3623 USD with a daily gain of 2.75%.