4 major US economic events to watch this week

• Major economic events in the United States, including the CPI, Producer Price Index, initial unemployment claims, and retail sales, will significantly impact the cryptocurrency market. this week.
• These indicators will provide insight into inflation trends, labor market conditions, and consumer spending, which could impact future Fed policy and cryptocurrency price movement.

Following Donald Trump’s re-election to the White House and the Federal Reserve’s interest rate cut announcement at last week’s Federal Open Market Committee meeting, Bitcoin and the broader cryptocurrency market showed strength with the price of Bitcoin reaching a new all-time high of $81,858 earlier today. I mentioned Knf.

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Along with Bitcoin, altcoins also followed gains as they put in a strong showing with Ethereum and other altcoins extending their weekly gains to over 30%. US macroeconomic data will continue to influence the future action of Bitcoin and the broader cryptocurrency market, with volatility for traders and investors ahead. This week, all eyes will be on the four major macro indicators which include the CPI, Producer Price Index, Initial Jobless Claims and US Retail Sales. Let’s take a look at each of these.

1. The US Consumer Price Index and its impact on the cryptocurrency market

On Wednesday, November 13, Federal Reserve Chairman Jerome Powell will release US Consumer Price Index (CPI) data for the final month of October. This comes a week after the Federal Open Market Committee decided to cut interest rates by 25 basis points, and the CPI will be a key indicator that will influence the Fed’s policy decisions going forward.

The US CPI for September was 2.4%, down from 2.5% in August and 2.9% in July, indicating a general slowdown in inflation since April. Economists expect headline inflation to fall by 0.2% in October, with the core CPI – which excludes volatile food and energy costs and is closely watched – falling by 0.3%.

If inflation numbers come in hotter than expected, it could halt the cryptocurrency market’s rise. On the other hand, signs of slowing inflation would give the Fed more room to cut interest rates in the future, injecting liquidity into the market.

2. Initial unemployment claims

Another major economic event in the United States this week is the release of initial unemployment claims, with continuing claims providing insight into the size of the unemployed population. The Labor Department will publish this data on Thursday, November 14, following a recent increase of 3,000 new claims, to 221,000 for the week ending November 2.

This data comes amid the Federal Reserve’s growing concerns about the gradual slowdown in the labor market. It was also one of the main reasons why the Fed cut interest rates by 50 basis points in September. I mentioned Knf. In response to ongoing labor market trends, Fed officials implemented an additional quarter-point rate cut last week.

3. US Producer Price Index data and the impact of the cryptocurrency market

This week, the US Bureau of Labor Statistics (BLS) will also release the core Producer Price Index (PPI) for October, which identifies price increases at the producer level.

Its impact on financial markets lies in its measurement of inflation at the wholesale level. A higher PPI indicates increased production costs, which could lead to increased energy and hardware expenses necessary to mine and process cryptocurrencies.

Therefore, higher-than-expected PPI numbers will negatively impact the price of Bitcoin and the cryptocurrency market in general.

4. Retail sales in the United States

The US Retail Sales report summarizes the key economic events that have potential implications for cryptocurrencies this week. The Census Bureau will release the data on Friday, providing insight into consumer spending trends.

Retail sales represent a large portion of the American economy. In September, sales rose by 0.4%, and a 0.3% increase is expected in October.

Strong retail sales in October indicate a decline in recession fears, indicating a healthy economy and higher consumer spending.