Five financial cryptocurrency market news indicators worth watching this week | Author: Rubikkav | Capital | June 2021
Knowing that we were still very silent in the last few days, we believe that important news will be pointed out every week as relevant.
As described investmentIt seems that the Fed’s comments that interest rate hikes may be earlier than expected will determine market sentiment this week and even the next few months, as market participants’ positions in their monetary policy guidance have undergone drastic changes.
Therefore, the focus will be on the appearance of Fed Chairman Jerome Powell in Congress on Tuesday and the statements of several other Fed officials this week.
Friday’s personal income and expenditure data will also attract attention, especially the reading of the core PCE price index, which is the Fed’s favorite inflation indicator. The stock market showed a downward trend last week; value stocks were particularly hit, and this pattern seems to continue, at least in the short term.
In the UK, the Bank of England will hold a meeting on Thursday, and the market will pay close attention to new clues of interest rate hikes. Then this is the knowledge you need to start the new week.
according to Glass nodeFrom a macro perspective, the supply balance held by long-term (blue) and short-term (red) long-term holders is significantly similar to the 2017 macro peak. The chart below shows the relative supply held by each group and whether they are profitable (dark) or loss (light).
According to the above, since the top of $64,000, long-term holders have an additional 5.25% of circulating supply, of which 1.5% is currently underwater (holding unrealized losses). Then we can say that although the price is close to the cost basis of many long-term holders, they continue to hold.
The Fed unexpectedly talked about the possibility of two interest rate hikes in 2023 last week, which was earlier than market expectations, and pointed out that it has also reached the point where it can start talking about phasing out the $120 billion monthly stimulus plan.
When St. Louis Fed President James Brad said on Friday that as the economy reactivated after the coronavirus pandemic, accelerating monetary policy tightening was a “natural” response to economic growth and rising economic growth inflation, the shift was obvious.
On the eve of the monetary policy meeting, the question of whether stronger-than-expected inflation will prompt the Fed to take action earlier has shrouded the financial markets.
Market participants will pay close attention to Fed Chairman Jerome Powell’s statement on the Fed’s emergency loan program and the current policy of the House Selection Subcommittee regarding the coronavirus crisis issued via a satellite link on Tuesday.
In addition, several other Fed officials will appear this week, and their remarks will also receive market attention. The market is looking for new signals about the future direction of monetary policy.
New York Fed President John Williams and St. Louis Fed President James Brad will attend Monday, while Cleveland Fed President Loretta Meister and St. Louis Fed President Francisco Mary Daley will attend on Tuesday.
Other Fed attendees this week include Atlanta Fed Chairman Rafael Bostic and Boston Fed Chairman Eric Rosengren.
The US stock market closed sharply lower on Friday, with the Dow Jones and Standard & Poor’s 500 indexes recording their worst weekly performance since the end of October and the end of February, respectively. The Nasdaq Technology Index also closed lower.
The decline is marked by falling stock values, falling commodity prices, and a rebound in the U.S. dollar and US government bonds.
“I’m not surprised to see a small sell-off in the market. Tim Ghriskey, chief strategist at the Inverness Legal Advisors Investment Company in New York, told Reuters, given that we have experienced a long period of time. It is not surprising to see some profit-taking periods with strong consecutive rises.
Investors will pay close attention to the economic data released this week to understand whether the recent surge in inflation — the consumer price index in May accelerated at the fastest rate in nearly 13 years — is still continuing.
Personal income and expenditure data for May will be released on Friday, including readings of the core PCE price index, which is the Fed’s favorite inflation indicator.
The economic agenda also includes reports on new and existing home sales, durable goods orders, manufacturing and service industry activities, as well as weekly reports on first-time unemployment claims. Given the uneven recovery in the labor market, this has caused great expect. .
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