The cryptocurrency and stock markets continue to grow despite tariff uncertainties. This upward momentum may be supported by some signs that the economy is weakening and the likelihood of a rate cut in September is increasing.
However, analysts tend to suggest that the road ahead may still be bumpy, as developments in trade, macroeconomics, and geopolitics continue to cast a shadow over the market.
This week, all attention is on inflation data and consumer sentiment reports, factors that could also influence the Federal Reserve in September.
Economic Events from August 11 to August 15
The Consumer Price Index (CPI) report for July, excluding food and energy, will be released on Tuesday, and this is one of the two main measures of inflation. Policymakers, businesses, and consumers closely monitor the CPI report, as it reflects price trends across the economy and shapes market sentiment. CPI is expected to rise more sharply, from 2.7% to 2.8%.
The Producer Price Index (PPI) report for July will be released on Thursday, and this is another leading indicator of inflation as it reflects input costs for producers and manufacturers, while also impacting retail prices.
July retail sales data will be released on Friday, indicating how much consumers are spending on durable and non-durable goods, while also highlighting the overall economic situation.
Next are the preliminary figures on consumer sentiment and inflation expectations, summarizing findings from the monthly survey measuring consumer confidence and long-term inflation expectations in the United States.
According to CME's Fed Watch tool, the chance of a rate cut in September is currently 88%. The earnings report season is nearing its end, so all attention is focused on Nvidia, which is expected to report on August 27.
Cryptocurrency Market Outlook
Momentum into the weekend, extending into Monday morning in Asia, has pushed total market capitalization up 2% on the day to an all-time high of $4.13 trillion.
Bitcoin surged over 3% early Monday, reaching a four-week high of $121,850, just $1,000 away from its all-time high. A new peak seems inevitable.
Ethereum has also outperformed, soaring to a nearly four-year high of $4,320 earlier this week. ETH is now just 11.5% away from its all-time high in 2021.
Only two top coins have truly seen volatility, while the remaining alternative coins have been relatively flat, except for Hyperliquid and Chainlink, both of which gained more than 4% on the day.