coindesk.com
While crypto markets these past few days have mostly reacted to crypto-specific events – mainly the SEC’s lawsuits against Binance and Coinbase – economic news may dominate in the coming week.
Here’s the calendar:
Tuesday will see the release of the U.S. Consumer Price Index (CPI) for May, with market observers eyeing whether annual headline inflation will slow from April’s 5.5% rate and the core rate from 4.9%. Stubbornly high inflation has forced the U.S. Federal Reserve to continue its now year-plus long string of rate hikes, which has acted as a headwind to crypto markets in general and bitcoin (BTC) in particular.
Perhaps the main event for the week, the results of the Federal Open Market Committee’s (FOMC) June meeting will be released at 2 p.m. (ET) on Wednesday. Traders are currently pricing in about a 75% chance the Fed will pause what’s become a historic string of rate increases that started in March 2022, and has seen the benchmark fed funds rate move from a range of 0.00-0.25% to the current 5.0-5.25%. Following the meeting results, Fed Chair Jerome Powell will hold a press conference.
Wednesday will also see the release of the Producer Price Index (PPI) for May. Not as closely watched as the CPI, headline PPI slowed to 2.3% in April and the core rate to 3.4%.
On Thursday, initial jobless claims for the week ended June 10 will be released. This number began to creep higher over the past couple of months, and last week went into full gallup, jumping 28,000 to about an 18-month high of 261,000. The action suggests some labor market weakness even as job gains in the monthly nonfarm payroll reports say otherwise.
Also on Thursday, the European Central Bank (ECB) will announce its latest rate hike decision. The ECB has been on a rate-hike tear since last July as countries also look to tame high inflation.