CPI Report: US Inflation for May Ticks Lower to 3.3%, Sliding Below Estimates

US dollar depreciated across the board and Bitcoin prices jumped 5% to trade near $70,000.

• Inflation in the US cooled to 3.3% in May, according to the consumer price index USCPI. The figure slid below analyst expectations for a 3.4% clip on an annualized basis and prompted a run away from the US dollar and into risk assets, lifting the prices of stocks, gold, and crypto. Broadly, the softening number was celebrated by investors because it suggested that the Federal Reserve might be approaching the first interest rate cut. More on that later today.
• The CPI report comes just hours ahead of the highly-anticipated, market-moving Federal Reserve interest rate decision. Fed officials are expected to keep rates steady at 5.50% and this is more or less factored into prices. More importantly, Fed boss Jay Powell will deliver his key remarks after the rate decision. And markets will be watching for hints into any prospects for rate trims.
• Back to the inflation report — easing price pressures sparked a rally in the price of Bitcoin. The OG token shot higher by 5% from $67,000 to just around $70,000 a piece. Gold also saw increased buying momentum with prices moving up by 1% to $2,340 per ounce. Meanwhile, the US dollar retreated across the board with the EURUSD powering higher from $1.0730 to $1.0830.