Recent inflation data is showing some relief—numbers came in lower than expected. This opens the door for potential rate cuts from the Federal Reserve, which could have significant ripple effects across financial markets. Lower interest rates typically support risk assets like cryptocurrencies, as investors seek better returns in a lower-yield environment. Markets are watching closely to see if policy shifts will follow these softer inflation readings. Economic conditions in major hubs like the U.S. automotive sector and broader consumer strength remain under scrutiny as traders position for what comes next.