Investors are looking forward to another week of volatility with two major inflation reports due out alongside retail sales data, which could have a direct impact on financial markets, including cryptocurrencies.
Recent economic reports reflect a strong economy and persistent inflationary pressures, which increases the chances that the Federal Reserve will maintain its current stance without cutting interest rates in the near future.
In this context, “the ongoing trade war headlines will continue to have an impact after last week’s volatility,” Copisi’s message noted.
Despite the stability of the cryptocurrency market over the weekend, digital currencies resumed their decline as Asian trading began on Monday morning.
Among the major economic events this week, former President Donald Trump is set to announce new tariffs on Monday, including a 25% duty on steel and aluminum imports, including from Canada and Mexico, in addition to his intention to impose reciprocal tariffs on countries that impose tariffs on American goods, which could be announced on Tuesday or Wednesday.
The Consumer Price Index (CPI) report, a leading measure of inflation, will be released on Wednesday, followed by the Producer Price Index (PPI) report on Thursday, which reflects production costs and is a signal of inflationary pressures.
The retail sales report, due out on Friday, provides insight into consumer spending, a key factor in determining the health of the economy and inflation trends.
Elsewhere, Federal Reserve Chairman Jerome Powell will deliver his semi-annual congressional testimony on Wednesday and Thursday, appearing before the House Financial Services Committee and the Senate Banking Committee, which could add further volatility to the markets.
Coinbase, the largest cryptocurrency exchange in the United States, is also set to report its earnings on Thursday, an event that could weigh on market sentiment towards the cryptocurrency sector.
The cryptocurrency market cap fell by more than 1% on the day to $3.31 trillion at the time of writing, as digital currencies started the week in the red.
