Where Will Wild Week of Economic Events and Fed Rate Decision Drive Crypto Markets?

The US economic calendar is full of activity this week, with the Federal Reserve reacting to rising PCE, PPI and CPI inflation data.

In addition, the central bank’s decision and upcoming economic data releases will provide insight into the inflation battle and the broader US economic trajectory, shaping market sentiment for the coming months.

Also, this week will see a series of S&P 500 gain reports of more than 20%.

Economic events to watch

All eyes are on Federal Reserve Chairman Jerome Powell, who begins a two-day meeting on Tuesday. Policymakers at the Federal Open Market Committee are expected to keep rates between 5.25% and 5.5% when they conclude on Wednesday.

Interest rates in the US have remained unchanged since last July as inflation remains stubbornly high, above the Fed’s 2% target.

Powell will hold his regular press conference on Wednesday to discuss the details of the decision and the frustrating current inflationary pressures.

Also, last week’s GDP report showed slow economic growth but higher inflation, which spooked markets at the time.

“Virtually all the major headwinds are converging this week,” commented macroeconomic outlet The Kobeissi Letter.

This week is going to be absolutely wild:

The Fed will react for the FIRST time to rising PCE, PPI and CPI inflation data.

This includes Fed Chair Powell’s Q&A following the rise in the first two months of inflation since September 2023.

Meanwhile, more than 20% of the S&P 500 will be…

— Kobeissi Letter (@KobeissiLetter) April 28, 2024

On the economic front, the April jobs report is due out on Friday and is expected to show unemployment at 3.8%. However, this is in line with expectations, so no major surprises are expected.

Reports on consumer confidence, ISM manufacturing and payroll will also be released this week.

Several major companies, including Apple, Amazon, AMD and MasterCard, will release their quarterly earnings reports this week, adding to market volatility.

Crypto market outlook

Digital asset markets have been relatively inactive over the weekend after a 4.4% decline since the same time last week.

Total market capitalization is down slightly to $2.4 trillion, with lower trading volumes in Asia on Monday morning.

Bitcoin is down 2% on the day in a dip below $62,000, but remains within the sideways channel that formed in late February.

Ethereum prices hit a two-week high over the weekend of $3,342, but the asset had started to retreat by Monday morning, falling 3% to $3,200.

Altcoins were a sea of ​​red in what is potentially shaping up to be a volatile week for crypto markets, which could see further losses if rates remain unchanged.

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