This week, the focus is on key reports that provide insights into the U.S. economy’s health and future. One of the most anticipated reports is the Personal Consumption Expenditures (PCE) report, which is the Federal Reserve’s preferred inflation measure. Additionally, reports on consumer sentiment and inflation expectations could shake up the markets.
Consumer confidence data will be released on Tuesday, giving us an idea of sentiment and the status of economic recovery. However, the big report to watch is the Q1 2024 GDP Growth Annualized (final estimate) on Thursday. The second estimate showed economic growth slowing to 1.3% annualized from the previous quarter’s 3.4%, and the final estimate is expected to confirm these figures.
Friday, June 28th, will be a busy day with the release of May’s Core PCE. Investors and policymakers will be closely watching this report following lower-than-expected May CPI numbers, looking for any continuing disinflationary trends. Additionally, May’s Personal Income and Personal Spending reports will be released, providing crucial information about overall economic health and potentially influencing central bank decisions. June’s Michigan Consumer Sentiment Index and Consumer Inflation Expectations will also be released, showing consumer confidence levels and long-term inflation expectations.
With a heavy economic data week ahead, there could be increased volatility for risk-on assets like crypto. Total capitalization has fallen 5% over the past 24 hours to a six-week low of $2.35 trillion. The crypto markets have dropped by 11% this month, with around $300 billion leaving the space. Bitcoin fell 4% to around $61,000 but managed to hold above that level. Ethereum also dropped to a six-week low of $3,310. Altcoins like Solana, Dogecoin, Shiba Inu, and Avalanche saw heavier losses, with Avalanche hitting its lowest level this year over the weekend.
In conclusion, all eyes are on the upcoming economic reports and their potential impact on the markets, including the crypto market. The data released this week will provide valuable insights into the state of the U.S. economy and could influence investor sentiment and market trends. As investors navigate through the uncertainty, staying informed and analyzing the data will be crucial in making informed decisions.