Another heavy economic data week lies ahead on the United States economic calendar so more market volatility could be on the cards.
Crypto markets have held on to last week’s gains over the weekend following a boost from the Federal Reserve’s 0.5% interest rate cut.
This week has a number of reports on consumer sentiment, gross domestic product, and more inflation data.
“Expect more volatility and larger swings as markets shift attention to the next Fed meeting,” commented the Kobeissi Letter on Sept. 22.
Economic Events Sept. 23 to 27
Monday will see the release of the S&P Global Services PMI (purchasing managers index) report which captures business conditions in the services sector that contributes significantly to total GDP. This is followed by consumer confidence reports on Tuesday, also reflecting conditions and sentiment in the overall economy.
The regularly scheduled weekly jobs data will be available on Thursday, along with durable goods orders, a gross domestic product (GDP) revision, and pending home sales.
Friday sees the personal consumption expenditures (PCE) price index report, which is one of the key indicators of inflation used by central bank policymakers in their decision-making.
Key Events This Week:
1. S&P Global Services PMI data – Monday
2. CB Consumer Confidence data – Tuesday
3. August New Home Sales data – Wednesday
4. August Durable Goods Orders data – Thursday
5. Q2 2024 Final GDP Reading – Thursday
6. August PCE Inflation data – Friday…
— The Kobeissi Letter (@KobeissiLetter) September 22, 2024
All eyes are on the Fed’s next meeting on November 7 which could see another rate reduction. The CME Fed Watch tool currently has a split 50:50 chance of a 25 basis point or another 50-point cut.
In Asia, stock markets traded in a narrow range on Monday morning as investors weighed a raft of data that reinforced concerns about the health of China’s economy, reported Bloomberg. “Things in China are going from bad to worse,” Tony Sycamore, an analyst at IG in Sydney, told the outlet.
In Japan, the yen weakened after the Bank of Japan indicated Friday that policymakers are not in a rush to raise interest rates again.
Crypto Market Outlook
Crypto markets have remained relatively stable over the past 24 hours, with the total capitalization at $2.31 trillion.
Around $200 billion has poured back into the asset class over the past seven days following the Fed’s larger rate cut, which was bullish for risk assets.
Bitcoin hovered around the $63,000 level for most of the weekend but started to climb, coming just shy of $65,000 during the Monday morning Asian trading session. The asset has nove gained 9% since the same time last week.
Ethereum was also on the move following weeks of FUD topping $2,600 in early trading in Asia, which culminated in a weekly gain of 14.5%.
The altcoins were mixed overall but Binance Coin (BNB), Litecoin (LTC), Sui (SUI), and Bittensor (TAO) were performing slightly better.