Will Crypto Markets Rebound on This Week’s Key Inflation US Reports?
This week will see a lot of key economic data released in the United States which may have an impact on crypto markets.
Another busy week is shaping up on the US economic calendar with key inflation data and the minutes from the March Federal Reserve meeting.
Core Consumer Price Index (CPI) figures are due out, and market participants eagerly await them as they are a leading inflation indicator.
Additionally, the Q1 2024 earnings season kicks off on Friday with reports from some of the country’s leading banks.
Key Events This Week:
1. March CPI Inflation data – Wednesday
2. Fed Meeting Minutes – Wednesday
3. March PPI Inflation data – Thursday
4. Initial Jobless Claims data – Thursday
5. MI Consumer Sentiment data – Friday
6. Total of 8 Fed speaker events this week
— The Kobeissi Letter (@KobeissiLetter) April 7, 2024
Economic Calendar
The March Core CPI data is due on Wednesday. This report is one of the two key indicators used to measure inflation, with the other being the Personal Consumption Expenditures (PCE).
CPI reflects the price trends in the economy and has a direct impact on the Federal Reserve’s policy rate decisions. The figures are expected to fall a tiny amount, according to Market Watch.
Thursday will see March’s Producer Price Index (PPI) report, which reflects input prices for producers and manufacturers.
This index measures the costs of producing consumer goods which directly affects retail pricing and is seen as a good pre-indicator of inflationary pressures.
April’s Michigan Consumer Sentiment Index and preliminary Consumer Inflation Expectations reports are due on Friday, April 12.
These reports provide the results of a monthly survey of consumer confidence levels and views of long-term inflation. Consumer confidence directly impacts spending, which contributes around 70% of the country’s GDP.
The minutes of the March Fed FOMC meeting are on Wednesday and several central bank speeches are scheduled for this week. Fed policymakers , including Chair Jerome Powell, do not appear convinced that inflation has subsided so will be looking towards these reports for evidence either way.
The official inflation rate in America is 3.2%, with a forecast increase to 3.4% for March, which may induce market volatility.
Crypto Market Outlook
Crypto markets have remained relatively stable over the weekend with total capitalization at $2.71 trillion on Monday morning in Asia.
Bitcoin had a brief spike of over $70,000 on Sunday but quickly retreated back to $69,500, where it had been trading tightly for the past 24 hours.
Ethereum has gained 1% on the day to reach $3,420 at the time of writing. The altcoins are mostly in the red this Monday morning, with heavier losses for Solana and Litecoin.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Gold drops to four-week low, below $4,300 as USD firms amid Fed hike bets and Iran risks
Apple’s Leadership Transition “Price” Settled: Ternus Takes 75% Equity as a Bet on the S&P 500, Cook Stays On with a Pay Cut to Ensure a Smooth Transition
Apple's new CEO John Ternus has a target total compensation of approximately $58 million for the 2027 fiscal year, with as much as $55 million in equity awards, 75% of which are directly tied to the performance of the S&P 500 index. Tim Cook, who will assume the role of executive chairman, has a target total compensation of about $47 million under his new pay package, with $45 million in equity awards, half of which are linked to overall market performance.
Solana breaks falling wedge, targets $400 as ETF holdings top $1 billion
Reserve Bank of New Zealand Raises Rates Twice in a Row, Global Central Banks Enter "Data-Dependent Tightening"! "Higher for Longer" Returns as Main Market Pricing Theme
The Reserve Bank of New Zealand has raised its key interest rate for the second consecutive time, aiming to shift towards a less stimulative policy environment to curb inflationary pressures. As widely expected by the market, the Monetary Policy Committee of the Reserve Bank of New Zealand announced in Wellington on Wednesday that the Official Cash Rate would be increased by 0.25 percentage points to 2.75%. The Reserve Bank's latest forecast indicates that another 0.25 percentage point rate hike is likely before the end of this year.
Crypto prices
More
