Next week, there will be critical developments that may affect the crypto money market. Consumer Price Index (CPI) and Producer Price Index (PPI) data to be announced in the USA, FED President Jerome Powell’s speeches at the Congress and the explanations of the FED officials may determine the direction of the market.
US employment data and reactions of the crypto market
US non -agricultural employment data announced on February 7 led to fluctuation in the markets. While the dollar and bond returns rise, there was a decrease in stocks and crypto money markets. The possibility of implementing new customs tariffs of the United States was among the factors that make investors uneasy.
The US Federal Reserve (FED) stressed that inflation should fall steadily by keeping interest rates constant at the range of 4.25 – 4.50 percent at the last meeting. Some FED officials said that increasing trade taxes can increase prices and therefore interest rates can be kept higher for a longer period of time.
US inflation data to be announced on February 12
US Consumer Price Index (CPI) data and FED President Powell’s statements will be one of the most important developments that will shape the expectations of interest rate reduction. In December, the annual inflation rate was recorded as 2.9 percent and core inflation was 3.2 percent. According to Cleveland Fed’s estimation model, annual inflation is expected to decrease to 2.85 percent and core inflation to 3.13 percent.
In addition, on February 11, Fed members Hammack, Williams and Powell will make speeches. On February 12, the FED members will be followed by Bostic and Powell, as well as the statements of the European Central Bank and the Central Bank of the UK.
Jerome Powell’s Congress Speeches
FED President Jerome Powell will make a speech on Wednesday, February 14 at the House of Representatives and on Thursday, February 15 at the Senate. Powell’s assessment of US economy and monetary policy can have a significant impact on markets.
According to analysts, Powell may repeat the messages given at the Fed meeting in January. However, there is a possibility of making new explanations that will surprise the markets in the face of the questions of the congress members. FED officials may continue to emphasize that inflation should be kept under control for interest rate reduction.
US manufacturer price index (PPI) and crypto currencies to be announced on February 13
The US Manufacturer Price Index (PPI) and retail sales data will determine expectations for the direction of the dollar in the markets and interest policies.
High incoming PPI data may weaken interest rate reduction expectations and strengthen the dollar. In this case, sales pressure may increase in risky assets. Low -incoming data may increase the possibility of the Fed’s interest rate reduction and create a positive movement in the crypto currency market.
