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3 Things That Could Move Markets With Big Inflation Reports Due This Week

Crypto markets have moved higher over the weekend with big gains for altcoins as Bitcoin pushed past $81,000 into new price discovery zones.

Last week, two major catalysts kicked off the action with a sweeping victory for Donald Trump in the US presidential elections and the Federal Reserve cutting interest rates by a further 25 basis points.

Fed Chair Jerome Powell reiterated his stance that the central bank’s future policy decisions will continue to be dependent on these economic reports, and this week will see key inflation data released.

Economic Events Nov. 11 to 15

Powell indicated that he believes rates remain restrictive even after last week’s reduction, suggesting that inflation appears to be on a path toward the Fed’s 2% target. Additionally, his comments opened the possibility the central bank might pause these reductions at its next meeting in December.

October’s CPI inflation report is due on Wednesday, and this data is one of the two key indicators used to measure inflation. The second one is the PCE report. CPI data reflects the price trends in the economy, shapes consumer spending and business outlook, and directly affects the Fed’s policy rate decisions.

Thursday will see the release of October’s Producer Price Index (PPI) report, which reflects input prices for producers and manufacturers and measures the costs of producing consumer goods. This directly affects retail pricing and is a leading indicator for the following month’s CPI and overall inflation outlook.

October’s Retail Sales reports will be released on Friday, providing insight into the amount of money consumers are spending on both durable and non-durable goods in the US.

Fed chair Powell will speak on Thursday, and several other central bank speeches are planned for the week.

“Markets will also continue to digest earnings season, the election outcome, and the Fed meeting,” commented the Kobeissi Letter.

Bitcoin Hits $81K ATH

Crypto market capitalization has climbed to its highest level since the mid-March peak, hitting $2.88 trillion following a weekend of solid gains for most crypto assets.

Bitcoin hit an all-time high of $81,800 during late trading on Sunday and remains over $80,500 at the time of writing, indicating that momentum could continue.

Ethereum also continued its surge, topping $3,200 over the weekend and holding onto gains during the Monday morning Asian trading session.

The altcoins were also pumping with huge gains for Dogecoin (DOGE), Cardano (ADA), and Shiba Inu (SHIB) over the weekend.

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