Weekly Market Breakdown: CPI, USD Moves, BTC, and What Lies Ahead | Trade Zone with Joe Jeffriess
Welcome, and thank you for joining us for this week’s recap. This week saw a flurry of activity in the data department, particularly with the US CPI figures surpassing expectations. This unexpected surge caused a stir in the market, resulting in a drop in US indexes from their recent highs and a noticeable uptick in the USD. However, the panic was short-lived, as comments from Federal Reserve members reassured investors, indicating that minor upticks in inflation were anticipated on the path towards target levels. Additionally, lower-than-anticipated retail sales provided some relief, helping to stabilize the situation.
Following these fluctuations, risk markets and stocks managed to claw back most of their losses, while the USD saw a decline in value. The question remains: was this reaction an overreach, and can we expect to see upward trends persist? Crypto markets also captured attention this week, with Bitcoin surpassing the $52k mark once again, and Ethereum showing resilience as it approached $2900.
Today, traders will keep a close eye on the Producer Price Index (PPI) data, another important measure of inflation. A weaker-than-expected reading could bolster risk sentiment, while a stronger reading might bolster the USD. Looking ahead, next week brings the eagerly anticipated Federal Open Market Committee (FOMC) meeting minutes, along with several key releases including Canadian CPI, as well as PMI data from the EU, Germany, France, the UK, and the US, across both services and manufacturing sectors.
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