This week, market participants are closely monitoring the PCE inflation report and the Federal Reserve minutes, following last week's CPI data. January's CPI showed headline inflation at 2.38% year-on-year and core CPI at 2.5%, the lowest since early 2021, initially boosting stock and crypto markets. However, crypto gains were short-lived over the weekend amid ongoing geopolitical tensions and macroeconomic uncertainty.
The week ahead includes several key economic events, with traditional markets closed in the US on Monday for President's Day. Notable reports include the ADP employment update on Tuesday, January Retail Sales, and the delayed December Durable Goods Orders on Wednesday. The Federal Reserve meeting minutes and 10 central bank speaker events are also scheduled, potentially influencing future monetary policy. Thursday will provide an early look at Q4 economic growth with the GDP report, while the December PCE inflation report is anticipated to be the week's highlight.
In the crypto market, total capitalization has dropped 2.5% to $2.41 trillion, with Bitcoin retreating to $68,300 and Ether falling 5% to $1,950. The market remains volatile as investors await further economic data and central bank insights.
Key Economic Reports and Market Volatility Expected This Week
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