Retail sales monthly rate (0.6% > expected 0.4%) —— Consumption remains strong

PPI year-on-year rate (3% > expected 2.7%) —— Inflation pressure is resurging

Impact on financial markets:

Strong consumption + higher-than-expected inflation = the Federal Reserve (Fed) faces greater difficulty in cutting interest rates.

Bullish for the US dollar. Higher interest rate expectations lead capital to flow into US assets, potentially strengthening the US dollar index in the short term.

US Treasury yields: rising. Increased inflation risk leads investors to demand higher yields, causing bond prices to fall.

Impact on the cryptocurrency market:

Short-term impact: bearish (decreased risk appetite)

Tightening liquidity: if the market expects the Fed to maintain high interest rates, a stronger dollar will lead to global liquidity tightening.

$BTC $ETH