This week we continue to hold a bearish outlook, mainly due to the market sentiment being dominated by the Federal Reserve's actions and key economic data this week.
1. Firstly, the FOMC minutes from the July meeting released early Thursday (August 21).
As analyzed before, the FOMC minutes primarily reveal the Federal Reserve's internal views on the stubborn nature of inflation,
and the feasibility of whether they should cut interest rates in September.
Given that the PPI data indicates high interest rates need to be maintained for a longer period, this meeting is likely to be a mild bearish signal.
2. The Jackson Hole Global Central Bank Annual Meeting, from Thursday (August 21) to Saturday (August 23).
Here, we mainly look at the speech by Federal Reserve Chair Powell to see if he will signal a green light for interest rate cuts in September or release clear signals for a rate cut. Of course, it is likely that Powell will not provide a commitment to cut rates, which is mostly a small bearish signal.
3. The global PMI preview data for August will also start to be released on Thursday (August 21) morning.
PMI is an economic health report mentioned previously, focusing on whether the service sector is cooling down and whether the manufacturing sector remains weak. Even if the data is slightly below expectations, it will be bearish for the crypto market.
For traders, it is advisable to appropriately reduce positions to increase tolerance, and wait until Powell's speech is over for a clearer situation, after which further evaluations can be made.
