US PPI & Europe’s CPI Impact on Bitcoin (BTC) and Ethereum (ETH): A Week of Crypto Market Volatility Ahead


PPI from the USA and Europe’s CPI Will Set the Volatility for the Week Ahead

  • The financial markets are set for a rollercoaster week with key insights on inflation and monetary policy across the G10, particularly the EUR and USA.
  • Significant economic indicators are expected to reshape market dynamics.
  • “All data release times mentioned are in Australian time, so be sure to adjust accordingly using the Finlogix Economic Calendar,” says Luca Santos, Technical Market Analyst at ACY Securities.

This article provides an in-depth analysis of the upcoming financial week, focusing on the potential impact of the Producer Price Index (PPI) from the USA and Europe’s Consumer Price Index (CPI) on market volatility.

Monday: A Slow Start to the Week

Monday kicks off with relatively low volatility across the market. The agenda is light, featuring only New Zealand’s inflation expectations and a speech on US monetary policy from an FOMC member. These subtle hints from the FOMC member offer valuable insights into future monetary policy.

Tuesday: A Touch More Intrigue

Tuesday brings more intrigue, particularly in the EUR area, with Germany releasing its MoM CPI. Any uptick could stir volatility. Later in the day, the eagerly awaited Producer Price Index (PPI) will be unveiled, offering a glimpse into producer-side inflation. A higher-than-anticipated PPI could drive bullish sentiment for the USD.

Wednesday: The US Consumer Price Index (CPI) Takes Center Stage

Attention shifts to the US Consumer Price Index (CPI) on Wednesday. Anticipated CPI figures reflect a 0.1% decrease from the previous month. A lower-than-expected CPI could propel the EURUSD upwards. Concurrently, Retail Sales data will shed light on consumer spending trends.

Thursday: Further Insights into US Monetary Policy

Thursday brings further insights into US monetary policy with additional FOMC speeches. In Asia, Japan’s GDP figures are anticipated to show a significant decline, potentially pushing the JPY into weaker territory.

Friday: The Week Draws to a Close

As the week draws to a close, all eyes turn to the Euro Area’s CPI YoY and MoM releases on Friday. Expected to dip slightly from previous figures, this could weaken the EUR. The week’s playbook for EURUSD hinges on US data; lower-than-expected releases could deflate the USD Index (DXY), buoying EURUSD.

Conclusion

This week promises a rollercoaster in the financial markets with key insights on inflation and monetary policy across the G10, particularly the EUR and USA. Stay tuned for pivotal data releases that might reshape market dynamics. Gear up for a week of crucial economic indicators!

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