Crypto Market This Week: What To Expect From US PCE Inflation, Jobs Data, GDP Growth

This week, the crypto market is gearing up for an information-rich week, as a number of key U.S. economic indicators are expected to shape Fed policy expectations. Bitcoin and other risk assets may see more volatile movement as investors evaluate inflation, economic growth and labor market conditions.

Key Economic Events This Week

The main attention will be on the Personal Consumption Expenditures (PCE) price index for July, which is released on Wednesday. The preferred inflation measure of the Federal Reserve is PCE. The headline measure is projected to be 0.1% higher month-on-month following a 0.1% decline in June.

Meanwhile, the annual rate is projected to be 3.6% compared with 3.7%. The figures for the Core PCE (excluding the food and energy prices) are projected to rise by 0.2% from the prior month. The annual reading is forecast to be 3.3%.

The inflation data will be carefully considered before the Fed’s September meeting. June PCE inflation was at 3.7% and core PCE was 3.3%. Both are still above the central bank’s 2% inflation target. A higher than desired reading in July may further support the expectations that interest rates will stay higher. A more benign print might bolster anticipation for easier policy.