After the release of PPI data, money markets have priced down the probability of the Federal Reserve raising interest rates by 50 basis points in December.
Data from the London Stock Exchange Group shows that after U.S. October producer price gains came in lower than expected, the likelihood of the Federal Reserve raising interest rates by 25 basis points in December has increased relative to the probability of a 50 basis point hike. The PPI index rose 0.3% month-on-month, below analysts’ forecast of 0.4%; the year-on-year reading was up 6.5%, also missing the 6.6% expectation. Following the data release, money markets priced in a 91% probability of a 25 basis point Fed rate hike, up from 86% prior to the release; meanwhile, the probability of a 50 basis point hike fell from 14% to 9%.
6 minutes ago
Bitcoin and Ethereum ETFs See Massive Outflows: $BTC -$308.81M, $ETH -$64.95M in 24 Hours
Nov 13 Update:
#Bitcoin ETFs:
1D NetFlow: -4,423 $BTC(-$308.81M)??
7D NetFlow: -19,045 $BTC(-$1.33B)??
#Ethereum ETFs:
1D NetFlow: -32,917 $ETH(-$64.95M)??
7D NetFlow: -218,001 $ETH(-$430.15M)??
6 minutes ago
Fed's Goolsbee: Inflation is broad, moving in the wrong direction.
Federal Reserve official Austan Goolsbee said inflation is broad-based and moving in the wrong direction. He noted that one should not feel complacent just because wage inflation has not materialized, adding that inflation will determine the path of interest rates. "I agree the Federal Reserve still has work to do on inflation," he stated.
6 minutes ago
U.S. October annual PPI hits four-year high, further reinforcing Federal Reserve rate hike expectations.
U.S. producer prices rose further in October, marking the largest annual increase in four years, reinforcing market expectations that the Federal Reserve may raise interest rates again after the widely anticipated rate hike next month. The U.S. Bureau of Labor Statistics (BLS) said Friday that October PPI rose 0.3% month-on-month, below the 0.4% consensus estimate, with the prior month’s figure revised up to 1.4%. Last month’s producer prices were lifted by a 0.5% gain in goods prices, driven mainly by food and basic organic chemicals. Services prices rose 0.2%, marking the fifth consecutive month of increases. October PPI surged 6.5% year-on-year, the largest annual rise since November 2022, following a 6.3% increase in September. The report arrives after this week’s October CPI data came in hotter than expected. Additionally, October nonfarm payrolls surged as released last week, with the unemployment rate dropping to 4.1% from 4.2% in September. Combined with remarks from Federal Reserve Governor Christopher Waller, this has left financial markets torn between pricing in a 25 basis point rate hike in December and keeping the door open to a 50 basis point increase.
6 minutes ago
Bitcoin rebounds, breaks through $70,000
According to HTX market data, Bitcoin has rebounded to break through the $70,000 level, with a 3.62% decline in the past 24 hours.
6 minutes ago
XXAntiWar Trading Review: This year's profits mainly came from bottom-fishing storage coins and HYPE swing trading, while the two largest losses were both from ZEC short positions.
Crypto KOL XXAntiWar reviewed his trading activities this year, noting that his two largest losses stemmed from ZEC short positions, which he closed voluntarily to limit losses. Had he retained those positions, both would have been force-liquidated. Over the past several months, he spent most of his time trading ZEC swing positions, resulting in a net profit of roughly $20,000. This year’s gains came primarily from buying the storage sector on dips and swing trading HYPE. XXAntiWar shared that he had predicted ZEC would fall to $800 when the token was trading at $1200, but its price later surged to $1600. By the time ZEC pulled back to the $800 level, he no longer held any short positions. He emphasized that in futures trading, one should never stubbornly hold losing positions or add margin; excessive position sizes and high leverage reduce adjustment room, and funds allocated to futures accounts should be prepared for total loss.
6 minutes ago