The post Crypto Correction Today: Will These Key Economic Events Crash the Market or Fuel This Week? appeared first on Coinpedia Fintech News
Next Week’s key economic events include inflation, oil, and labour market data. All of these are sensitive, and we can expect them to influence the cryptocurrency market immensely. Let’s try to understand the US economic scenario better.
Overview of Next Week’s Key Economic Events
Inflation Data
The NY Fed will release the Consumer Inflation Expectations data for November today, December 9, 2024. The October figure stood at 2.9%, which is the lowest reported since October 2020, after holding at 3% for over four months consistently. For November, Trading Economics predicts that the index will return to 3.0%
The US Consumer Price Index for November will be released on Wednesday, December 11. The CPI for October rose to 315.644 from 315.3 in September. November’s forecast is unchanged at 315.3 points.
The US Producer Prices Index for November is scheduled to be released a day after the US CPI’s release (on December 12). The index climbed to 145.615 points in October, its highest ever, up from 145.329 in September. For November, experts forecast a further increase to 146 points.
Higher CPI and PPI figures could signal persistent inflation, leading to potential Federal Reserve rate hikes. Tighter monetary policies reduce liquidity, often negatively affecting cryptos.
Oil Market Trends
The OPEC monthly oil market report will be released on December 11, Wednesday. It will offer insights into global oil market trends. Understanding oil trends is important as oil prices often affect global energy costs and investor sentiment.
A bullish oil market from OPEC’s report may lead to higher energy costs, impacting cryptos mining operations.
Jobless Claims and Labour Market Trends
The Initial Jobless data for the first week of December will be released on December 12, Thursday. The index rose to 224,000 on November 30, up from 213,000 on November 23. For December 7, the consensus is 221,000, with a TE forecast of 225,000.
Rising jobless claims can indicate economic distress, potentially driving more investors to cryptocurrencies.
Import/Export Prices
The Import and Export data for November will be released on December 13, Friday. The export index in October saw a 0.8% increase, surpassing markets expecting a 0.1% decline. For November, forecasts range from -0.3% to +0.9%. The import index in October rebounded by 0.3% after a 0.4% decline in September. November predictions range from -0.3% to +0.2%.
Strong export price growth indicates a robust economy, possibly reducing crypto’s appeal. Conversely, higher import prices could drive inflation fears, increasing demand for cryptocurrencies.
In conclusion, Next week’s economic data will likely play a pivotal role in shaping the crypto market’s direction.