Crypto Market Braces for Inflation, Jobs Data, GDP Growth
The crypto market is bracing for a pivotal week, with key US economic indicators set to influence Fed policy expectations. The Personal Consumption Expenditures (PCE) price index for July will be closely watched on Wednesday, as it's the preferred inflation measure of the Federal Reserve. A projected 0.1% increase in the headline measure and an annual rate of 3.6% compared to 3.7% in June may support higher interest rates.
The Core PCE (excluding food and energy prices) is forecasted to rise by 0.2% from the prior month, with an annual reading of 3.3%. These figures are still above the central bank's 2% inflation target, which could lead to expectations of tighter policy. A more benign print might bolster anticipation for easier policy.
Another crucial indicator will be GDP growth, projected at 1.5% annualised expansion in the second quarter, up from 2.1% growth in the first quarter. The new GDP report on Wednesday will provide further insight into economic conditions. Labor market data, including weekly new claims for unemployment benefits, will also be released on Thursday.