Next week is important for the cryptomarket because a few major events are taking place. These include the release of the CPI and PPI data, speeches of important Federal Reserve officials and testimony of Jerome Powell, all of whom can influence the direction of the crypto market in the coming week.
Job report and rate problems shake markets before inflation data
After the job report from January 7 was released on 7 February, the dollar and bond returns increased, but the shares and crypto prices fell. These market changes were influenced by more than just the job report. It concluded a week full of strong economic data and growing concern about coming American rates. The January 2024 job report was an important highlight last week, but other economic data also came in strong and exceeded expectations.
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During the last meeting, the Federal Reserve kept its main interest stable at 4.25%-4.50%, and emphasized that they should see continuous improvement of inflation before they think about reducing rates. Various FED officials also stated that the prices gained by rates can lead to the longer period of their policies than what the markets expect.
CPI report on 12 February
American inflation figures and comments from Federal Reserve chairman Jerome Powell will play a crucial role in determining the direction of the American interest rates. In addition, new updates on Trump administration rates will be closely viewed.
With the first decisions of the Central Bank of 2025 behind us, this week can be quieter. However, there is still important news for investors, because the crucial CPI report comes from the United States.
In December, the most important CPI percentage increased slightly to 2.9% on an annual basis, while the core percentage fell to 3.2%. According to the predictions of the Nucasting Model of Cleveland Fed Fed, the most important CPI percentage is expected to have fallen to 2.85%in January, and the core percentage has fallen slightly to 3.13%.
On 11 February, key figures from the Federal Reserve, including Hammack, Williams and Powell, will give speeches together with the Mann and Bailey of the Bank of England. The next day, February 12, will discusses from the Bostic and Powell of the FED, as well as the nail of the ECB and the Greene van de Boe, which may influence the financial markets with their insights into monetary policy.
The attention will also change on inflation numbers from China, economic statistics from Japan and data on the gross domestic product of the UK.
Jerome Powell’s witness to take place
Federal Reserve chairman Jerome Powell will probably not share much new information this week during his twice a year report to the congress, but his appearance can still influence the markets.
Powell will testify on Wednesday in the House of Representatives and then on Thursday in the Senate and the opinion of the Fed about the economy.
Deutsche Bank -Analists said: “He will probably adhere to the FOMC script of January, but the market always seems to get something new from these performances, including a lot of Congres Q&A.”
Economists believe that he will reflect a common theme from recent Federal Reserve meetings: there is currently no hurry to lower the most important interest rate.
US PPI report
If the US releases a strong producer price index (PPI) or retail sales sales, this could stimulate the dollar by making investors think that interest rates can be delayed. Although markets have done well lately, any unexpectedly high inflation investors can make themselves feel less bullish.
Moreover, if the industrial production figures are strong, this can increase the prices of oil and metals. However, if the retail trade is weak, this can reduce the demand for raw materials driven by consumer spending and it can also have a negative influence on the dollar. As a result, we may see a bullish comeback in the Cryptomarkt.