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July PCE data, revised second-quarter GDP data, and more major developments are coming next.
ByJordan Lyanchev
After one <a href="https://xpertsstudio.com/this-weeks-big-events-are-priced-in-for-stocks-will-bitcoin-agree/” title=”This Week’s Big Events Are Priced In for Stocks: Will Bitcoin Agree?”>bitcoin’s most volatile and impressive weeks, the cryptocurrency market has turned its attention to important US macro news to be announced in the next five days.
The analysts at the Kobeissi Letter highlighted several such events scheduled next, but three stand out for the crypto industry: the July PCE inflation report, revised second-quarter GDP data, and the Federal Reserve Chair Kevin Warsh’s highly anticipated appearance at Jackson Hole for the first time.
All Eyes on Wednesday
Monday is expected to be a quiet day, with nothing major scheduled. The data coming on Tuesday will probably not impact crypto, as it’s the August CB consumer confidence data and the July new home sales data. However, it all changes on Wednesday, which will be the busiest day of the week.
The Bureau of Economic Analysis will release July’s Personal Consumption Expenditures (PCE) Price Index and core PCE at 8:30 ET, which remains particularly important as it continues to be the Fed’s preferred measure for assessing underlying inflationary pressures.
Economists cited by Kiplinger expect core PCE to rise slightly month over month and 3.2% annually. Such a reading would leave underlying inflation higher than the Fed’s 2% objective, despite relatively encouraging CPI and PPI figures from earlier this month.
As usual, hotter-than-expected readings could strengthen expectations that US interest rates will remain elevated or even rise again, potentially pushing Treasury yields and the dollar higher. In contrast, softer reading would likely have the opposite effect by reducing pressure on the Fed to tighten monetary policy further.
The other big event on Wednesday will be the release of the second estimate of US GDP for Q2. The advance reading showed annualized growth of just 1.5%, down significantly from 2.1% during Q1.
Source: cryptopotato.com