Next week is important for the encryption market because some of the main events happen. This includes the release of the consumer price index and PPI, speeches from the important Federal Reserve officials, and a certificate from Jerome Powell, which can all affect the trend of the encryption market next week.
The function and tariff report relates to the tariff that shakes the markets before inflation data
After the Jobs report was issued in January 7, dollar and bond revenues increased, but stock and encryption prices decreased. These changes in the market were affected by more than just a job report. He concluded a week full of strong economic data and growing concerns about the upcoming US definitions. The job report in January 2024 was one of the most important characteristics of last week, but other economic data also came in strong expectations and exceeded expectations.
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At its last meeting, the Federal Reserve kept the main interest rate fixed at 4.25 % -4.50 %, stressing that they need to see a continuous improvement in inflation before thinking about reducing rates. Many federal reserve officials stated that the prices raised by definitions may lead to the maintenance of their policies for a longer period than the markets expect.
CPI report on February 12
The numbers of inflation and notes from the Federal Reserve Chairman Jerome Powell will play a decisive role in determining the direction of interest rates in the United States. In addition, any new updates will be monitored on the tariffs from the Trump administration.
With the decisions of the first central bank for the year 2025 behind us, this week may be quieter. However, there is still important news for investors, as the decisive consumer price index from the United States will come.
In December, the main consumer price index rate increased slightly to 2.9 % on an annual basis, while the basic rate decreased to 3.2 %. According to the predictions of the Cleveland Fed inflation model, the main consumer price index is expected to decrease to 2.85 % in January, and the basic rate decreased to 3.13 %.
On February 11, the main numbers of the federal reserve, including Hammack, Williams, Powell, along with Mann and Bailey at the Bank of England, will give speeches. The next day, February 12 will be characterized by talks from Bustic and Powell, as well as Nagil, the European Central Bank and Green’s Green, which may affect the financial markets with their vision on monetary policy.
Attention will also turn into the numbers of inflation from China, economic statistics from Japan, and data on GDP in the United Kingdom.
Jerome Powell Certificate
Perhaps the President of the Federal Reserve, Jerome Powell, will not participate many new information this week during his report twice a year to Congress, but his appearance may still affect the markets.
Powell will witness in the House of Representatives on Wednesday and then in the Senate on Thursday, discussing the Federal Reserve’s view on the economy.
“It is possible that it will adhere to the text of FOMC in January, but it seems that the market always gets something new from these manifestations, which includes many questions and answers in Congress,” said Deutsche Bank analysts.
Economists believe that it will repeat a common topic of the recent federal reserve meetings: there is currently no hurry to reduce the main interest rate of money.
American PPI report
If the United States releases the PPI price index or retail sales numbers, it may enhance the dollar by making investors believe that interest rate cuts may be delayed. Although the markets were fine recently, any unexpectedly high enlargement can make investors feel optimistic.
In addition, if the industrial production numbers are strong, it may increase the prices of oil and minerals. However, if retail sales are weak, it may reduce the demand for goods driven by consumer spending and can negatively affect the dollar. As a result, we may see a bullish return in the encryption market.
