The US July CPI data will be released tonight at 20:30, and this important economic indicator will undoubtedly become the focus of the global financial markets. Previously, the market widely anticipated a slight Rebound in core inflation, while there are also differences within the Fed on this matter.

The release of this data will directly impact the Fed's subsequent policy decisions. If core inflation does indeed rebound, those in favor of continuing interest rate hikes may become more resolute, believing it necessary to further suppress inflation. However, the cautious camp is concerned that excessive rate hikes could jeopardize economic stability. The current economic situation is already fraught with uncertainty, and with the impact of tariff issues, the Fed is likely to adopt a prudent approach to avoid hasty policy adjustments.

For the financial markets, CPI data is akin to a ticking time bomb. The US stock market, bond market, and foreign exchange market will all fluctuate accordingly. If the inflation data is higher than expected, it could lead to a decline in the stock market, an increase in bond yields, and a stronger dollar; conversely, if the data is lower than expected, it may drive the stock market up, lower bond yields, and weaken the dollar.

However, investors should not only focus on short-term market reactions, but should also pay attention to the Fed's long-term policy direction and the overall economic resilience. The data release tonight will undoubtedly trigger significant volatility in the financial markets, and all parties are closely watching the profound impact of this economic data.