Next week is important for the cryptography market, because some major events occur. These include the publication of data from the IPC and the IPP, speeches by important officials of the Federal Reserve and the testimonies of Jerome Powell, which could all influence the management of the cryptography market in the to come.
The report of jobs and pricing concerns shake the markets before inflation data
After the publication of the January 7 job report on January 7, dollar and bond yields increased, but stock prices and cryptography fell. These market changes have been influenced by more than the report of jobs. He concluded a week filled with solid economic data and increasing concerns about the upcoming American rates. The January 2024 job report was a key point of last week, but other economic data were also strong and exceeded expectations.
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During its last meeting, the Federal Reserve maintained its main stable interest rate at 4.25% at 4.50%, stressing that they must see a continuous improvement in inflation before thinking of reducing rates. Several Fed officials also mentioned that prices pushed by prices could lead to maintaining their strict policies for a longer period than the markets provide.
CPI report on February 12
The figures for American inflation and the remarks of the president of the Federal Reserve Jerome Powell will play a crucial role in the decision of the American interest rate department. In addition, any new update on the Trump administration prices will be closely monitored.
With the first decisions of the central bank of 2025 behind us, this week could be quieter. However, there are still new news for investors, as the United States crucial CPI report arrives.
In December, the main IPC rate increased slightly to 2.9% in annual sliding, while the central rate decreased to 3.2%. According to the predictions of the model for the implementation of the inflation of Cleveland Fed, the main IPC rate should fall to 2.85% in January, and the central rate reduced slightly to 3.13%.
On February 11, key figures from the federal reserve, notably Hammack, Williams and Powell, as well as the Bank of England Mann and Bailey, will pronounce speeches. The next day, on February 12, will present talks from the BOSIC and Powell of the Fed, as well as Nagel of the BCE and the Greene of the BOE, having an impact on the financial markets with their ideas on monetary policy.
The attention will also turn to the number of inflations from China, Japan economic statistics and the data on the gross domestic product of the United Kingdom.
The testimony of Jerome Powell takes place
The president of the federal reserve, Jerome Powell, will probably not share much information this week during his report twice a year at the Congress, but his appearance could still affect the markets.
Powell will testify in the House of Representatives on Wednesday, then in the Senate on Thursday, discussing the opinion of the Fed on the economy.
Deutsche Bank analysts said: “It will probably stick to the January FOMC script, but the market always seems to be doing something new from these appearances, which include many questions and answers from the congress.”
Economists believe that it echoes a common theme of recent federal reserve meetings: it is currently in a hurry to reduce the interest rate of key federal funds.
American PPI report
While the United States publishes high producer (PPI) or retail price sales figures, this could stimulate the dollar by reminiscent of investors that interest rate reductions could be delayed. Although the markets have behaved well lately, any unexpected inflation could make investors less optimistic.
In addition, if the number of industrial productions is solid, it could increase the prices of oil and metals. However, if retail sales are low, this could reduce the demand for products mobilized by consumer spending and could also have a negative impact on the dollar. Consequently, we could see a bullish return to the cryptography market.
