- Economic Events September 16-20
- Interest Rate Decisions in Various Countries
- Expectations in the Cryptocurrency Market
This week, important economic data will be released, along with central bank interest rate decisions that could impact the markets.
Economic Events September 16-20
Tuesday will see August’s Retail Sales report, which provides data on the amount of money consumers are spending on various goods. This offers an insight into consumer spending and provides a leading indicator for the current quarter’s economic growth and inflationary factors. The August Industrial Production report is also due on Tuesday. This information reveals the volume of production in US industries such as manufacturing, mining, and utilities. Although it is a smaller slice of economic activity, it can still be a leading performance indicator. The highly anticipated Federal Reserve interest rate decision and press conference is on Wednesday, Sept. 18. The CME Fed Watch tool currently has 41% odds on a 25 basis point rate cut and 59% chance of a larger 50 basis point cut, which could drop rates from the current 5.5% to around 5%.
Interest Rate Decisions in Various Countries
Interest rate decisions are also due in the United Kingdom, Brazil, Norway, Turkey, and South Africa. The Japanese and Chinese central banks also take center stage as announcements are expected alongside decisions in Taiwan and Indonesia. Martin Whetton, head of financial markets strategy at Westpac Banking Corp. in Australia, told Bloomberg, 'At the very least, a dovish cut should be expected given the run of data and the starting point for policy, and this should justify market forward pricing.'
Expectations in the Cryptocurrency Market
Crypto markets were dumping again on Monday morning, with total capitalization declining 4.3% to $2.12 trillion, wiping out all of the weekend gains. Bitcoin was hit 3%, falling from above $60,000 on Sunday to below $58,500 on Monday morning. It is likely to continue, returning to support at the $58,000 level. Ethereum was hammered even harder, with a 6% crash to $2,275 at the time of writing, its lowest level for over a week. The altcoins were playing their usual lemming tactics, following suit and dumping even harder with a sea of red enveloping the crypto top twenty.
Markets are bracing for significant changes this week due to key economic data and central bank decisions. Cryptocurrency investors will also be keeping a close watch on the developments.
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