The cryptocurrency community has been buzzing with excitement following a significant market surge. This rally has been fueled by a series of favorable factors, including increased institutional interest and political developments. As the market braces for a pivotal week, investors are keenly watching several major economic releases that could influence asset prices.
Upcoming Economic Events: What to Expect
This week is poised to be crucial for the market as several key economic indicators are set to be released. These include:
- Tuesday: CB Consumer Confidence data and October New Home Sales data
- Tuesday: FOMC Meeting Minutes
- Wednesday: Q3 2024 GDP data
- Wednesday: October PCE Inflation data
- Thursday: US Markets Closed for Thanksgiving
US PCE Inflation & FOMC Minutes In Focus
Investors worldwide will be particularly attentive on November 27, when several vital US economic numbers, including the FOMC’s November policy meeting minutes, are scheduled for release. A key aspect to monitor is whether the Federal Reserve hints at a potential interest rate cut in December. The minutes will reflect the mixed views among Federal Reserve officials regarding rate adjustments.
The FOMC meeting on November 26 is another significant event, as it will provide insights into the Federal Reserve’s stance on inflation targets. Reports indicate that the Fed may deviate from its traditional 2% inflation target, adding further intrigue to the week’s proceedings. Additionally, the newly formed Department of Government Efficiency, spearheaded by Elon Musk, is focusing on reducing federal spending, adding another layer of complexity to the economic landscape.
Key Events to Watch
The release of the second estimate for US GDP growth in the September quarter is another focal point. Initial estimates suggested a 2.8% growth rate, a slight decline from the 3% growth observed in the June quarter. The finalized Q3 GDP data, scheduled for release on Wednesday, will offer insights into the overall health of the US economy and its potential impact on the financial sector.
In terms of inflation, the PCE inflation report is expected to reveal a 0.2% increase for October, with a year-over-year increase rising to 2.3%, up from the previous 2.1%. These figures will be pivotal in understanding the inflationary pressures facing the economy.
The Inflation Target
The Federal Reserve, after a significant rate cut in September, has adopted a more cautious approach, considering additional stimulus measures for the future. This shift highlights an adjustment in market expectations regarding inflation. Fed Chair Jerome Powell has reaffirmed that reaching the 2% inflation target remains a central goal.
Furthermore, the Core PCE inflation figures, excluding volatile energy and food prices, are projected to show a 2.8% increase, up from 2.7% in September. The monthly Core PCE figure is expected to remain steady at 0.3%, offering a consistent view of underlying inflation.
As the market anticipates these macroeconomic events, the ongoing rally in the cryptocurrency market may also be influenced by the expiration of crypto futures. Traders are watching closely, as these factors could significantly impact market sentiment in the coming days.
