On Friday, August 30, the US Bureau of Economic Analysis will unveil the US PCE figures.
If the PCE inflation number is greater, the crypto market will face more selling pressure.
Economists in the United States are predicting a rather strong reading for personal consumption expenditures (PCE) price index, the favored inflation indicator of the Federal Reserve. This means the US FOMC will have to think about cutting interest rates in September. If the PCE price index number is greater, the crypto market will face more selling pressure.
On Friday, August 30, the US Bureau of Economic Analysis will unveil the US PCE price index figures for July. Economists are projecting a yearly PCE of 2.6%, up from 2.5% last month. Additionally, a monthly increase of 0.2% is anticipated in the PCE, up from 0.1% in the previous month.
Core PCE, which does not include energy and food costs, is expected to increase 2.7% annually and 0.18 percent monthly. Markets expect inflation to remain low, even though the forecasts are somewhat higher than PCE figures from June.
Interest Rate Cut Likely
As reported by Morningstar, José Torres, a senior economist at Interactive Brokers, predicts that we will see further progress in addressing inflation. He said that this was because of the decline in the price of goods, crude oil, and gasoline. But today’s skyrocketing prices for gold, natural gas, and crude oil have traders on edge.
If PCE inflation is larger than expected, the values of Bitcoin and Ethereum are likely to decline. A wider sale of cryptocurrency will be set off by this. Prior to the Federal Reserve’s rate reduction on September 18, the European Central Bank (ECB) is contemplating a rate drop on September 12.
This development will provide traders more signals. Rate cuts are being considered by ECB officials, and this Friday will bring inflation data from France, Italy, and the rest of the Eurozone.
Highlighted Crypto News Today:
Cardano Fails to Break Out of Bullish Descending Wedge: What’s Next For ADA?
