CPI data is coming tonight! Why is US economic data important?

Yesterday, after several consecutive days of fluctuations, the focus of the global market was gathering on the upcoming U.S. economic data and the European Central Bank interest rate resolution. Traders in gold, forex, stock markets and commodity markets are paying close attention to these upcoming news as they will provide important clues to the future direction of the market. After talking about so many trading strategies, let’s talk about today why US economic data is so important in the global market!

The dominance of economic scale and status

As the world’s largest economy, the United States has a huge domestic market and a highly developed industrial system. For example, the US consumer market is huge, and companies in many countries regard the United States as an important export market. The fluctuations in the US economy will directly affect the trade performance of these countries.

The core position of the financial system

The US dollar is the world’s major reserve currency and settlement currency, so the dynamics of the US market will have a significant impact on global capital flows. As one of the world’s financial centers, New York also plays a key role in the flow allocation of global capital.

‌Federal monetary policy impact‌

The Federal Reserve’s monetary policy adjustments, such as interest rate hikes or cuts, have a significant impact on global interest rate levels. Fed policy changes may lead to other countries’ defenseTo stop capital outflows and currency depreciation, adjust domestic policies and affect investment and consumption in the global economy. At the same time, although measures such as the Federal Reserve’s quantitative easing policy can stimulate economic growth, they may also lead to inflation and asset bubbles. Therefore, the Fed’s monetary policy shift has an important impact on global liquidity and economic stability.

The leading role of scientific and technological innovation

The United States has invested hugely in scientific and technological research and development and innovation, with many world-leading high-tech enterprises and scientific research institutions, and dominates the key technology fields such as information technology, biotechnology, aerospace, etc.; the United States’ scientific and technological innovation not only promotes the development of its own economy, but also provides technical support and impetus for the growth of the global economy.

Overall, the economic situation of the United States itself has affected global development and is more important for the financial market. Therefore, traders need to pay more attention to these international trends in real time, especially for the US CPI data tonight, which has a significant influence on the direction of the Federal Reserve’s interest rate cut in September. Traders still need to operate cautiously to avoid being affected by these macro factors.