- Consumer Price Index (CPI) is expected to release on February 12
- Both the Producer Price Index (PPI) and Initial Jobless Claims are set to be released on February 13
- Retail Sales Data should be released on February 14
The release of four key US economic reports this week may have a substantial influence on the dynamics of the cryptocurrency market.
The first on the list is the Consumer Price Index (CPI), which is expected to be published on February 12.
The CPI measures the average change over time in the prices paid by consumers for goods and services, serving as a primary indicator of inflation.
A higher-than-expected CPI could push the Federal Reserve to maintain or raise interest rates, reducing liquidity and weighing on risk assets like crypto. A lower CPI, however, may boost investor confidence and drive capital into crypto markets.
The next report is Producer Price Index (PPI), set to be released on February 13.
The PPI assesses the average change over time in the selling prices received by domestic producers for their output, providing insights into inflation at the wholesale level.
An uptick in PPI indicates increasing production costs, which can translate to higher consumer prices. Persistent inflationary pressures might prompt the Federal Reserve to adopt a more hawkish monetary policy (tightening of monetary conditions to combat inflation), possibly dampening enthusiasm for cryptocurrencies.
Related: Fed’s FOMC Meeting to Decide Economic Direction for 2025
On the same day, the Initial Jobless Claims report is scheduled to go live.
The report provides a weekly snapshot of the number of individuals filing for unemployment benefits for the first time. This metric serves as a leading indicator of labor market health and can significantly influence financial markets, including cryptocurrencies.
For example, an uptick in jobless claims may point to economic softening, which could lead to increased risk aversion among investors. This sentiment can result in a lesser demand for risk assets like cryptocurrencies. The situation can also work vice-versa.
Retail Sales and Consumer Confidence
On February 14, Retail Sales Data should be released.
This report details the total receipts of retail stores, reflecting consumer spending patterns and overall economic health.
Robust retail sales suggest strong consumer confidence and economic growth, which could bolster investor sentiment across various asset classes, including cryptocurrencies. Weak sales might raise concerns about an economic slowdown, potentially leading to reduced risk appetite among investors.
Related: Trump’s Economic Proposals: Tariffs, Tax Cuts, and Global Tax Withdrawal
With these reports set to release, crypto investors should prepare for possible market swings as economic indicators and Federal Reserve policy decisions shape trading sentiment.
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Source: https://coinedition.com/crypto-bulls-or-bears-4-key-us-reports-releasing-this-week-to-decide/