1 month ago
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Key Takeaways
- Fed hike probability reached nearly 70%.
- Crypto market capitalization fell about 2%.
- Altcoins recorded the larger declines.
- Core CPI is the next test.
Energy prices link two different rate paths
The European Central Bank raised its deposit rate by 25 basis points to 2.5% on Thursday, completing its second increase of the year.
The move was widely expected. The more important development for markets was the continued rise in energy prices and bond yields. Oil climbed above $105 a barrel, while Germany’s rate-sensitive two-year government bond yield reached approximately 3.07%, near its highest level in more than two years.
In the US, producer prices increased 5.4% from a year earlier, slightly above the 5.3% consensus. The report pushed traders to assign a greater probability to a Federal Reserve increase at its September meeting. Our separate analysis examines Read Entire Article
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