Cryptocurrency markets made gains over the weekend, with total market cap hitting a six-week high.
All eyes are on this week’s personal consumption expenditures inflation data, which is the Federal Reserve’s preferred gauge of inflation and could influence its decision to cut interest rates in September.
Additionally, the major shift in the US presidential race with Joe Biden stepping down could also impact markets in this busy economic week ahead.
Economic events from July 22 to 26
The preliminary readings of the S&P Global Manufacturing PMI and the S&P Services PMI for July are due on Wednesday. These reports provide an overview of business conditions in the U.S. manufacturing and services sectors.
Thursday will see the release of the annual GDP growth report for the second quarter of 2024, which provides an early look at the change in GDP,
GDP growth is estimated to have accelerated to 2% in the second quarter, up from a 1.4% annual rate in the first quarter. A higher-than-expected reading could delay expectations of interest rate cuts by central banks.
The main report this week is the core personal consumption expenditures report for June, due out on Friday. The data reflects the average amount of money consumers spend each month and is a key gauge of inflation for Federal Reserve policymakers.
Slowing PCE inflation and continued deflationary trends would support the prospects for a September rate cut.
Main events this week:
1. Existing Home Sales Data – Tuesday
2. New Home Sales Data – Wednesday
3. GDP data for the second quarter of 2024 – Thursday
4. June PCE Inflation Data – Friday
5. Michigan Consumer Confidence Index Data – Friday
6. ~20% of S&P 500 companies report earnings.
Huge week ahead with…
— Kobeissi Letter (@KobeissiLetter) July 21, 2024
Friday will also see the release of the Michigan Consumer Confidence Index and Consumer Inflation Expectations for July, which will provide further insights into longer-term inflation.
“We are in for a huge week as the July Fed meeting is just 10 days away,” Al Qubaisi wrote in his message.
About 20% of the S&P 500 companies reported earnings this week, including Alphabet, the parent company of Google, and Elon Musk’s Tesla.
Spot Ethereum ETFs are also expected to start trading on Tuesday, July 23, which could also impact crypto markets.
Cryptocurrency Market Predictions
The cryptocurrency market cap hit $2.6 trillion over the weekend, its highest level since early June. The move was driven primarily by bitcoin, which topped $68,000 in early Asian trading on Monday morning.
The value of the assets fell below $66,000 after news of Biden’s withdrawal from the presidential race, but it quickly recovered.
Most altcoins are up this morning, with the biggest gains for Solana (SOL), Dogecoin (DOGE), and Avalanche (AVAX).
