August inflation figures, which fell below 3% for the first time in a long time in July in the US, will be announced today at 8:30 A.M. While headline inflation is expected to come in at 2.5%, the data will also closely affect the Fed’s interest rate decision on September 18. Before the data, there is a decline in Bitcoin and S&P 500 futures and an increase in US bonds.

Interest rates, which have been increased for about 2.5 years in the US, have reduced inflation from 9% to below 3%, while the markets are waiting for the end of the monetary tightening policy. Headline inflation, which came in at 2.9% in July, is expected to come in at 2.5% today. If the data comes in below or above this level, it will be closely related to the Fed’s interest rate decision on September 18.

Decline in stocks, rise in gold and bonds

On the other hand, US stocks, which closed yesterday’s trading day positively, are experiencing declines in futures in the morning hours before the CPI data. S&P 500 futures are down 0.5%. Spot gold price increased by 0.3%, while bonds rose. This situation shows that investors tend to escape to safe havens with cash. There are also declines in Asian markets again…

Bitcoin also started to fall below $57,000 as of last night. The largest cryptocurrency is trading around $56,200 in the minutes when the news was written.

Interest rate hike message from the Japanese again

Junko Nakagawa, one of the governors of the Bank of Japan, gave an interest rate hike message, which caused the Japanese yen to strengthen. It is stated that this situation is also effective in some declines in global markets. Experts comment that the Japanese will wait for December or January for interest rate hikes.