The cryptocurrency market rebounded after US labor data showed signs of cooling in the economy and job market. Leading crypto Bitcoin (BTC) is trading just below the $17,000 mark. Other cryptocurrencies are also mostly in the green on the weekly chart. However, it’s possible that this week’s key events and data could change the outlook. Therefore, the eyes of investors and traders will be on them.
The implications of key data for cryptocurrencies
The US economic picture will not release any high-impact macroeconomic data in the first half of next week. The U.S. Bureau of Labor Statistics (BLS) will release December Consumer Price Index data on Thursday. On a monthly basis, Core CPI, which does not include volatile food and energy prices, is expected to increase by 0.3% after the 0.2% increase in November.
As you follow on Kriptokoin.com, monthly Core CPI rose at a softer pace than expected in October and November. Also, investors decided it was time for the Fed to take its foot off the accelerator. While Fed policymakers reiterate that they do not expect a rate cut in 2023, a soft-core inflation data could put further pressure on the US Dollar. It could also trigger another rally for cryptocurrencies.
Minutes from December’s policy meeting showed earlier in the week that most policymakers welcomed the easing of inflation in October and November. But he also revealed that he acknowledged that “significantly more evidence of progress” is needed to confirm the downtrend. On the other hand, a 0.5% monthly or higher increase in core inflation is likely to boost US Treasury bond yields and open the way down for cryptocurrencies.
Ahead of the weekend, the University of Michigan’s January Consumer Sentiment Preliminary Survey will be looked at for new impetus. Market players are likely to pay attention to the 5-year Consumer Inflation Expectation component, which stood at 2.9% in December, rather than the Consumer Confidence Index headline. It is unlikely that a significant change will be seen in this figure. However, it is possible to support the US Dollar with an increase in long-term inflation expectations. This, in turn, may lead to moving away from risky assets.
Calendar of important events and data of the week that will affect the markets
Monday, January 9
- 13:00 EU Unemployment Rate (Exp.: 6.5%)
- 20:30 Atlanta Fed President Raphael Bostic will speak.
Tuesday, January 10
- 13:10 Schnabel from the European Central Bank will speak.
- 17:00 Fed Chairman Jerome Powell will speak.
Wednesday, January 11
- GLMR Unlocking ($14.7M)
Thursday, January 12
- 08:00 European Central Bank (ECB) Monthly Report
- 16:30 US Ongoing Unemployment Insurance Applications (Expectation: 1,708K)
- 16:30 Core CPI (December Inflation) Expectation: 0.3% Previous: 0.2%
- 16:30 Core CPI (YoY) Expectation: 5.7% Previous: 6%
- 16:30 US Consumer Inflation (YoY) Expectation: 6.5% Previous: 7.1%
- 16:30 US Unemployment Benefits (Expectation: 220K, Previous: 204K)
- Aptos (APT) unlock ($17M)
Friday, January 13
- 15:30 Fed’s Patrick T. Harker will speak.
- 18:00 Michigan Inflation Expectation – January (Previous: 4.4%)