A busy week lies ahead on the economic calendar in the United States, with investors eyeing a central bank policymaker meeting on Wednesday.
Stock markets have shown signs of recovery, but the same cannot be said for crypto markets, which are facing heavy resistance.
Volatility could tick up again as all eyes will be on the Federal Open Market Committee (FOMC) meeting and minutes this week in addition to economic data reports.
Economic Events Aug. 19 to 23
The first economic event of the week is Wednesday’s FOMC meeting, during which the minutes from July’s meeting and policy decisions will be discussed.
This offers an in-depth account of the Fed policy outlook and includes details on committee members’ positions on monetary policy. There will also be insight into their opinions about the economic situation and trends going forward.
August’s S&P Global Manufacturing and Services PMI reports will be released on Thursday. These reports provide business conditions in the US manufacturing and services sectors, which are representative of overall economic conditions.
Policymakers use these reports as forward-looking indicators reflecting trends in the overall economy.
There will be another Fed speech on Friday. Chair Jerome Powell will take the stage at the Jackson Hole Economic Policy Symposium, an annual global forum for central bankers, policy experts, and academics in Wyoming.
His speech is expected to set the stage for an expected rate reduction in September and how much rates will drop in the following months.
Recent economic data reports have shown that inflation continues to fall toward the Fed’s 2% target, consumer spending is holding up, and unemployment is not worsening.
“The recent data flow is consistent with our soft-landing forecast,” wrote Bank of America Securities head of economics Michael Gapen in a note to clients on Friday.
Crypto Market Outlook
While tech stocks have ripped off the bottom, crypto assets have been sluggish.
Total market capitalization is down 1.3% on the day at $2.17 trillion, though remaining rangebound since recovering back over $2 trillion following the big market dump earlier this month.
Bitcoin could not hold above $60,000 and has retreated back to around $58,700 during the Monday morning Asian trading session.
Ethereum has fared a little better, gaining marginally on the day to trade at $2,642 at the time of writing.
Sourse: cryptopotato.com
