A busy week is ahead on the US economic calendar. Meanwhile, investors are still anxiously awaiting the announcement of the trade agreement.
Despite no formal agreement being reached, the cryptocurrency market maintained its gains over the weekend as the US and China sat down for trade negotiations.
Reports indicate that Donald Trump has listed about 20 countries as priorities for early trade negotiations, including major partners such as Japan, South Korea, and Vietnam.
The Federal Reserve maintained interest rates last week, a widely expected move due to increased macroeconomic uncertainty related to tariffs, indicating a continued 'wait-and-see' approach.
Important inflation and consumer confidence reports will be released this week, and if the results are worse than expected, it could trigger market turbulence.
Economic events from May 12 to 16
The consumer price index (CPI) for April, excluding food and energy, will be released on Tuesday. The CPI report is one of the two key indicators for measuring inflation, alongside the Personal Consumption Expenditures Index (PEX).
The consumer price index report reflects price trends across the economy and affects consumer spending and business confidence. However, in terms of consumer price increases, actual data often falls far below actual levels.
The Producer Price Index (PPI) report for April will be released on Thursday. This report reflects the input costs for producers and manufacturers and measures the production costs of consumer goods. This leading inflation data also influences policymakers' decisions.
The retail sales report for April will also be released on Thursday. This data indicates consumer spending on durable and non-durable goods and is a leading indicator of economic health.
On Friday, the Michigan Consumer Confidence Index and preliminary consumer inflation expectations for May will be released. These reports summarize the results of a monthly survey measuring consumer confidence and long-term inflation expectations.
The White House stated on Sunday that substantial progress has been made in the US-China trade agreement negotiations. US Treasury Secretary Scott Bessenette said, 'We will announce details tomorrow, but I can tell everyone that the negotiations have been productive.'
Cryptocurrency market outlook
During the Asian early trading session on Monday, the cryptocurrency market cap slightly dipped to $3.45 trillion. However, this figure still hovers near several months' highs.
Bitcoin's price was slightly below $105,000 on Sunday and remained around $104,000 on Monday morning, just 4.4% off its all-time high. Over the past week, Bitcoin's price has risen by 11%, though analysts expect some consolidation at this level.
Ethereum had a spectacular performance over the past week, soaring over 40% in the last seven days. On May 11, ETH approached $2,600 before slightly retreating, trading at $2,525 at the time of this writing.
Altcoins also performed well over the weekend, but their momentum has slowed as the new week begins.