A huge week lies ahead on the United States economic calendar, with key inflation and GDP reports and all eyes on the Federal Reserve’s rate decision.
Crypto markets have started the new week in the green, and the momentum could continue as trade tensions ease. The big event for the week is the Federal Reserve meeting on July 30, when the latest interest rate decision will be made.
Meanwhile, US President Trump has reached a deal with the European Union, which includes an agreement to open up trade at 0% tariff and for the EU to buy energy and automobiles from the US.
This comes just days after a deal was reached with Japan, and US stock futures have reacted positively this Monday.
Tuesday will see consumer confidence data released, which reflects how the public views the current state of the economy. There will also be some job opening reports released on Tuesday. Wednesday is a busy day with the second-quarter GDP report released, reflecting economic growth over the period.
The central bank’s two-day policy meeting will be in focus this week, especially due to President Trump’s persistent attacks on the Chair Jerome Powell. The Fed is expected to hold the borrowing rate steady in a target range of 4.25% to 4.50%.
“We expect Powell to repeat a patient, data-dependent policy outlook with flexibility, but he is unlikely to commit to cuts,” Prashant Newnaha, senior Asia-Pacific rates strategist at TD Securities, told Reuters.
The Personal Consumption Expenditure (PCE) price index report is scheduled for release on Thursday. This is a major gauge for inflationary pressures and could impact investor sentiment.
The August 1 deadline to raise tariffs is on Friday, and many countries have yet to come to the table to discuss deals. Meanwhile, earnings from four of the ‘Magnificent 7’ stocks – Meta, Microsoft, Amazon, and Apple – are eagerly awaited.
Total crypto capitalization is at an all-time high, having topped $4 trillion again as the big two are moving.
Bitcoin built on weekend momentum, reaching $119,754 during early trading in Asia on Monday morning. The asset has fully recovered from its Friday slump and is just 2.8% away from its all-time high.
Ethereum is doing even better with a 3% daily gain to come just over $3,900 on Monday. The asset is at a seven-month high and has gained a whopping 60% over the past month, largely due to ETFs and corporate treasury demand.
Other altcoins outperforming include Binance Coin (BNB), surging to an all-time high of $850, Bitcoin Cash (BCH), and Avalanche (AVAX).
