July's stable job data lowers the chance of a big Fed rate cut
by Tiffany Wang, WOO Analyst
The US Consumer Price Index (CPI) rose by 0.2% last month, bringing the 12-month inflation rate down to 2.9%, the lowest level since March 2021. Core CPI, which excludes food and energy, also increased by 0.2% monthly and 3.2% annually, in line with expectations. Notably, a 0.4% rise in shelter costs accounted for 90% of the total inflation increase, once again defying the Fed's hopes for easing in housing-related expenses.
Meanwhile, new unemployment claims fell to a one-month low last week, signaling a steady labor market. This tempered financial market expectations of a 50 basis point rate cut by the Federal Reserve next month. Further bolstering the economic outlook, consumer spending surged in July, with retail sales rising by 1%, far exceeding forecasts and easing recession concerns.
Market Overview from WOO X Research
BTC remains in a consolidation phase, staying above the critical support of $55,000. Short-term resistance is at $61,147, with potential upside targets of $64,141 and $66,000 if a breakout occurs. The uptrend is intact as long as BTC stays above $55,000.
Meanwhile, Solana's profitability has declined, prompting a shift in funds to older tokens on CEXs, although this hasn't yet had a significant market impact.
As volatility decreases, the market is either awaiting a BTC breakout to lead a broader recovery or looking for wealth effects to lift key assets and attract investor interest.
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