Inflation Data Brings Rate Hike Odds Down, But Markets Remain Uncertain

Yesterday's US inflation data saw headline CPI rising 0.1% monthly and 3.4% annually, matching forecasts. Core CPI increased 0.2% monthly and 2.5% yearly.

A hotter-than-expected core print could have sparked a rebound in the dollar, but analysts expect a soft one to cut rate-hike odds and support risk assets over the medium term.

Bitcoin held above $64,000 as markets assigned a 44% chance of a September Fed rate hike. The Dollar Index is trading right at its bullish trendline, with a decisive break below it indicating a potential reversal.