#BinanceABCs
November CPI report is merely a "formality"? The threshold to ignite the market may be extremely high!
Options traders are betting that the S&P 500 index's daily fluctuations will remain within 0.7%.
The market has already assumed that this data is either insignificant or, from the perspective of data collection, its quality is questionable and will not attract excessive attention.
This report is also unlikely to change the outcome of the Federal Reserve's policy meeting in January next year.
The threshold for CPI data to have an impact is very high; it must significantly exceed expectations.
The Federal Reserve's concern over the risks to employment is at least on par with, if not higher than, that of the CPI.
Another reason for the declining importance of CPI is that Federal Reserve Chairman Powell's term will end in May next year.
Traders may also downplay Thursday's inflation data based on seasonal factors—because the stock market is approaching the traditional bull market cycle.
People expect the stock market to rise to historical highs.
