Cryptocurrencies are closely watching key US economic data this week to assess the health of the country’s economy. As the year-end approaches, critical labor market reports closely monitored by the FED are on the calendar. Given the potential impact on portfolios, investors may want to adjust their strategies to these upcoming events. With crypto markets hitting new all-time highs, it’s a busy week on the United States economic calendar. But will cryptocurrencies go even higher?
Watch out for these events for cryptocurrencies
Crypto market capitalization reached a peak of over $3.6 trillion over the weekend as altcoins outperformed Bitcoin. This week’s economic data is primarily focused on employment and jobs. However, some manufacturing PMI reports will also be on the agenda. Noting that this week will be the last week of labor market data before the FED meeting on December 18, Kobeissi Letter added, “It’s a big week for the labor market.” Stock and crypto markets were buoyed last week as investors found reassurance in Donald Trump’s choice of veteran hedge fund manager Scott Bessent for Treasury secretary.
However, the Fed’s preferred measure of inflation, Core PCE, came in hot at 2.8%, raising some concerns about rising inflation and a hawkish pivot from the US central bank. A strong economy and persistently high inflation, as seen in last week’s GDP data, have raised questions among investors about whether another rate cut is expected this year.
ISM manufacturing and labor force releases will attract attention
The Institute for Supply Management (ISM) will release the ISM Manufacturing data for November on Monday, December 2nd, the first working day of the month. This index, also called the purchasing managers’ index (PMI), provides a monthly snapshot of US economic activity. The index, derived from a survey of purchasing managers at manufacturing firms across the country, is considered a critical indicator of the health of the US economy. The ISM manufacturing index follows weak purchasing managers surveys in the Eurozone, where businesses have cut payrolls for four months in a row. As a result, this report is a leading indicator to assess the state of the economy and anticipate changing trends.
The latest open jobs data will be released on Tuesday, followed by November non-farm payrolls data on Wednesday. Wednesday will also see the release of the ISM Services PMI for November, which shows business conditions in the US service sector. PMIs are leading indicators for changes in economic conditions. There is more employment data on Friday with non-farm payrolls and unemployment rate reports. These reports are two of the most important economic indicators for policymakers tracking changes in the number of positions, as they are strongly correlated with overall economic health. Friday will also see preliminary readings of the Michigan Consumer Confidence Index and Consumer Inflation Expectations for December. These reports present the results of a monthly survey on consumer confidence levels and longer-term inflation views.
Jerome Powell to speak
This week, there are a series of Fed speeches, including Chairman Jerome Powell on Thursday, December 5. On the other hand, the November employment report will be released on Friday, December 6. The report is expected to summarize the US economic data on the labor market for the past month. Economists expect the November employment report to show that payrolls increased by more than 250,000. 33,000 Boeing employees returned from strike after Hurricane Milton and started working at Boeing’s suppliers.
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