This week, several key economic events in the US could shape market trends and investor sentiment. From retail sales and housing data to jobless claims and the Federal Reserve’s interest rate decision, these reports will offer crucial insights into the state of the economy.
Why does this matter? Because shifts in economic indicators don’t just affect traditional markets – they impact crypto too! A strong economy could fuel investor confidence, while signs of slowdown might trigger uncertainty.
The US Retail Sales Index, set for release on Monday, measures the total sales of retail goods and services over a month.
In January, it dropped from 0.7% to -0.9%. The consensus expects that it would rise from -0.9% to 0.7%. According to TEForecast, the index would climb to 0.5%.
An increase in retail sales usually signals a strong economy, boosting investor confidence and encouraging riskier investments like cryptocurrencies. However, if consumer spending is too strong, the Federal Reserve may take a stricter stance on interest rates, which could negatively impact the crypto market.
The Housing Starts Index, coming out on Tuesday, tracks the number of new residential construction projects that begin each month.
In January, the index fell from 1.515 million to 1.366 million. The consensus forecast predicts a slight increase to 1.375 million, while TEForecast expects a further decline to 1.34 million.
A rise in housing starts signals economic growth and can boost investor confidence. However, if construction activity increases too much, it may push interest rates higher, making borrowing more expensive and potentially slowing down crypto investments.
The Initial Jobless Claims report, scheduled for Thursday, tracks the number of people filing for unemployment benefits for the first time.
In the second week of March, it slipped from 222K to 220K. The consensus estimates that it would grow sharply from 220K to 224K. As per TEForecasts, it would reach as high as 225K.
Higher jobless claims indicate economic weakness, which can lower investor confidence. However, a weakening labor market may also delay interest rate hikes, which could support crypto prices in the short term.
The Existing Home Sales Index, also releasing on Thursday, measures the number of homes sold where the mortgage has been finalized.
In January, home sales fell from 4.29 million to 4.08 million. Analysts expect another drop to 3.92 million.
A drop in US existing home sales signals economic slowdown. It may also suggest lower consumer spending. This could affect crypto market sentiment adversely.
The Philadelphia Fed Manufacturing Index, based on a survey of manufacturers in the Third Federal Reserve District, is set for release on Thursday.
In February, the index dropped from 44.3 points to 18.1 points. Analysts expect it to fall further to 12.1 points, while TEForecast predicts a decline to 11 points.
A shrinking manufacturing index indicates economic contraction and could lead to a more cautious market, affecting investment in both traditional and digital assets.
The Federal Open Market Committee (FOMC) will meet on Tuesday, with its decision on interest rates expected on Wednesday.
Most experts believe the Federal Reserve will keep rates unchanged for now. Recently, Fed Chair Jerome Powell
Crypto traders should stay alert, as changes in economic conditions and monetary policy can create both opportunities and risks.
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