This week, the US economic calendar is packed with key inflation reports that could significantly influence central bank policy decisions and shape the direction of digital assets in the coming days.
The crypto market showed signs of strength over the weekend, maintaining positive momentum into early Monday trading in Asian markets.
This week’s upcoming economic and inflation data could provide further support, especially if market expectations for another significant rate cut rise.
“The prospect of a November 50 basis point rate cut was nearly ruled out last week, but that could change,” noted analysts at the Kobeissi Letter.
Last week’s robust employment data highlighted the strength of the job market, increasing the likelihood that the US economy will continue growing above its long-term trend in the current quarter.
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Key Economic Events This Week
The Federal Reserve will release the minutes from its September meeting on Wednesday, 9 October 2024. It will offer insights into how policymakers perceive the current economic landscape. This release will be closely watched for any hints regarding future interest rate decisions.
On Thursday, 10 October 2024, the core Consumer Price Index (CPI) report will be released, providing a critical measure of inflation. As one of the major indicators used by the Fed, the CPI report is instrumental in shaping monetary policy.
It influences borrowing costs and has a direct impact on consumer spending and business pricing strategies. In September, easing price pressures led to a rate cut, affecting interest rates across various sectors.
Meanwhile, Friday brings the release of September’s Producer Price Index (PPI), another vital inflation gauge. The PPI tracks price changes from the perspective of producers, serving as a precursor to future consumer price trends.
On the same day, September’s Michigan Consumer Sentiment Index and Consumer Inflation Expectations reports will be published, revealing insights into consumer confidence and future inflation forecasts.
Additionally, major earnings reports from financial giants such as JPMorgan Chase, Wells Fargo, and BlackRock are expected this week, potentially providing further insights into economic conditions.
Key Events This Week:
1. EIA Short-Term Energy Outlook – Tuesday
2. Fed Meeting Minutes – Wednesday
3. September CPI Inflation data – Thursday
4. Initial Jobless Claims data – Thursday
5. September PPI Inflation data – Friday
6. Total of 18 Fed speaker events this week…
— The Kobeissi Letter (@KobeissiLetter) October 6, 2024
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Crypto Market Begins The Week In Green
Over the weekend, the total market capitalization of cryptocurrencies rose by over $100 billion. It reached $2.32 trillion by Monday morning in Asia.
Bitcoin saw a notable uptick, peaking at $63,900 before retreating slightly, representing a 2.8% gain and recovering much of last week’s losses.
Ethereum outperformed, gaining 3.7% to reach $2,500 during Asian trading, though it remains down 4% compared to last week.
Altcoins also showed positive movement, with notable gains in Avalanche (AVAX), Shiba Inu (SHIB), Near Protocol (NEAR), Sui (SUI), and Bittensor (TAO).
However, escalating tensions in the Middle East and Israel’s responses to the conflict may introduce volatility into the crypto market, potentially challenging its recent recovery.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
