Inflation problems were revived during American hours of the morning on Thursday, sending risk assets – crypto among them – strongly lower.
The July producer price index (PPI) increased by 0.9%, blowing estimates spent for 0.2% and 0.0% in June. Over one year on the other, the PPI was 3.3% higher against 2.5% forecast and 2.4% of June.
The basic PPI, which excludes food and energy, also increased by 0.9% in July, far exceeding 0.2% expected and 0.0% in June. The basic ICC from year to year increased by 3.7% against 2.9% expected and 2.6% in June.
Already on a record hit for a night more than $ 124,000, Bitcoin
fell below $ 119,000 to the news. Ether (Eth) Diving almost 4% to $ 4,550. Other altcoins recently heated by red such as Solana and XRP have also been struck.
Fresh labor market data provided no relief, with the first unemployment complaints for the week ending on August 9 at 224,000, slightly less than 228,000 expectations and continuing complaints at 1.95 million. The still tight labor market, combined with solid PPI readings, has strengthened the opinion that the Fed can maintain high interest rates for longer inflation to tame.
According to CME Fedwatch, the previous 100% chances for a rate drop in September slipped to 96% following new data.
In the traditional markets, the term contracts on the American stock market index have slipped 0.5%, the dollar gains ground and the yield of the US treasury at 10 years increased by five base points to 4.25%.
