Institution: It is expected that the CPI will be lower than expected, prompting the Federal Reserve to resume interest rate cuts in June

ChainCatcher news, according to Jinshi Data reports, the analysis agency Tradingkey stated that the market consensus predicts a year-on-year increase of 2.4% in the overall CPI for April, which is the same as in March. However, among the four main components of the CPI, only food shows an upward momentum, but it only accounts for 13.7% of the total CPI. Therefore, we believe that inflation in April will be lower than the market consensus.

This may increase the likelihood of the Federal Reserve restarting the rate cut cycle in June. Therefore, we expect the U.S. stock market to rise after the data is released, while the U.S. dollar index and U.S. Treasury yields will decline.