The market is facing many uncertainties as the U.S. prepares to impose new tariffs and important economic data is released.
Cryptocurrencies continue to soar thanks to a wave of institutional investors. Next week, U.S. CPI and retail sales figures will determine the direction of the Federal Reserve's interest rate policy.
MAIN CONTENT
The U.S. is preparing to impose new tariffs despite ongoing negotiations, affecting the global market.
Bitcoin and cryptocurrencies benefit from institutional capital inflows, setting new records.
CPI data and retail sales in the U.S. soon to be released will guide the Fed's interest rate policy.
The U.S. imposes new tariffs, but how much uncertainty remains in the market?
The U.S.-China trade war is still unresolved as many countries continue to negotiate. Although the tax deadline of July 9 has passed, trade partners have not been clearly informed of the final tax levels.
Official information from the U.S. President states that notification letters regarding tax levels have started to be sent out. However, this has not alleviated concerns as the tax imposition date of August 1 is approaching, putting significant pressure on the entire supply chain and financial markets.
“We will continue to closely monitor the developments of the negotiations and the impact of these tax policies on the global economy.”
John Bolton, U.S. National Security Advisor, July 2019
Why has cryptocurrency become a bright spot in the past week?
Bitcoin and other cryptocurrencies are recognized as a group of actively growing assets as capital flows from institutional investors continue to pour in.
This causes Bitcoin to continuously establish new price highs amid significant volatility in traditional financial markets. Many analysts believe that cryptocurrencies are gradually being recognized as a risk-hedging tool and an effective store of value.
“Institutional money is the main driving force behind the increased reliability and value of Bitcoin in the long term.”
Michael Saylor, CEO of MicroStrategy, 6/2019
How does U.S. CPI and retail sales data affect the Fed's interest rate policy?
CPI data and retail sales for June in the U.S. will be released next week, seen as key indicators affecting the Fed's decision to cut or maintain interest rates.
Currently, the market forecasts a slight increase in June inflation to 2.7% year-on-year, up from 2.4% in May. If accurate, the likelihood of the Fed cutting interest rates will decrease significantly, putting pressure on the USD and global financial markets.
Index May 2019 June 2019 Forecast Significance Annual inflation rate (CPI) 2.4% 2.7% Higher than forecast may reduce the likelihood of the Fed lowering interest rates Monthly inflation 0.1% 0.3% Slight increase reflects short-term price pressure Retail sales May results Will be announced on 11/7 Direct impact on assessing purchasing power and economic growth
What important events this week will affect the market?
Speeches from the Fed community, including Boston Fed President, Dallas Fed, and Fed Board members, are expected to occur continuously next week, providing detailed insights into the U.S. economy and monetary policy.
In addition, the Beige Book report on the economic situation is of particular interest to investors to assess market trends and risk levels.
Key speech schedule of Fed leaders this week
Tuesday 14:45: Boston Fed President Collins speaks.
Tuesday 21:15: Fed member Bowman speaks at the conference.
Wednesday 00:45 and 02:45: Boston Fed President Collins appears again with a speech.
Wednesday 07:45: Dallas Fed President Logan provides an update on the U.S. economy.
Wednesday 21:15: Cleveland Fed President Hammack speaks.
Thursday 02:00: Fed releases Beige Book.
Thursday 05:30: New York Fed President Williams speaks about the economy and policy.
Friday 22:00: Announcement of the 1-year inflation rate forecast in the United States.
Frequently asked questions
How will the new U.S. tariffs affect the global market?
Increased taxes may disrupt global supply chains, raise production costs, and put pressure on financial markets due to increased geopolitical risks.
Why does Bitcoin rise sharply when financial markets are volatile?
Institutional capital flowing into Bitcoin aims to diversify portfolios and seek safe assets amid economic uncertainties, helping Bitcoin prices to continuously reach new highs.
How does CPI data directly affect the Fed's interest rates?
CPI reflects inflationary pressures; when CPI rises sharply, the Fed may hold or raise interest rates to control inflation, otherwise it will consider cuts.
What information does the Fed's Beige Book provide to investors?
The Beige Book summarizes the most recent economic situation based on observations from Fed branches, helping investors predict monetary policy outlook.
What do the speeches of Fed leaders mean for the market?
Fed leaders' speeches provide signals of upcoming monetary policy, greatly influencing investor expectations and financial market volatility.
Source: https://tintucbitcoin.com/bitcoin-lap-dinh-moi-tuan-toi-cung-cpi/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to stay updated with the latest news on the cryptocurrency market and not miss any important information!
