This week, cryptocurrencies are closely following important economic data from the United States. As the end of the year approaches, investors are particularly interested in the labor market reports that the Fed is closely monitoring. This data could cause investors to reshape their strategies, given the potential impact on portfolios. A busy week awaits us on the economic calendar in the United States, with crypto markets reaching new all-time highs. But can cryptocurrencies continue this rise?
The crypto market value rose to $3.6 trillion over the weekend as altcoins outperformed Bitcoin. The economic data to be released this week will largely be related to employment and the labor market. In addition, some manufacturing PMI reports are on the agenda. It is stated that this week will be the last week of labor market data before the Fed meeting on December 18. Kobeissi Letter made the statement, “A big week for the labor market.” Last week, investors in stock and crypto markets gained confidence after Donald Trump chose experienced hedge fund manager Scott Bessent for the Treasury Department. However, the fact that Core PCE, one of the FED’s inflation measures, was at 2.8% brought rising inflation concerns and the possibility of a hawkish FED policy to the fore. In addition, strong economic data and high inflation raised questions among investors about whether there will be another interest rate cut.
The Institute for Supply Management (ISM) will release the November ISM Manufacturing data on Monday, December 2. This data is a key monthly summary of U.S. economic activity and is based on surveys of purchasing managers at manufacturing firms across the country. The ISM Manufacturing Index comes on the heels of weak purchasing managers’ surveys in the Eurozone, making it critical for understanding the current state of the economy and forecasting future trends. Job openings will be released on Tuesday, followed by November nonfarm payrolls on Wednesday. Also on Wednesday will be the November ISM Services PMI, which measures U.S. service sector business conditions. These PMIs are considered leading indicators of changes in economic conditions. On Friday, the nonfarm payrolls and unemployment rate reports, along with more employment data, will be released. These data are being watched closely by investors and policymakers because they reflect overall economic health. Additionally, preliminary readings of the December Michigan Consumer Confidence Index and Consumer Inflation Expectations reports will be released on Friday. These reports will provide important insights into consumer confidence levels and long-term inflation expectations.
This week, Fed Chairman Jerome Powell and other officials’ speeches on Thursday, December 5th will also be closely watched. In addition, the November employment report, to be released on Friday, December 6th, is expected to provide important data on the US labor market. Economists predict that payrolls will increase by more than 250,000 in this report. It is also reported that 33,000 Boeing employees returned from strikes after Hurricane Milton and started working at Boeing suppliers.