This week's macroeconomic calendar is packed with events in the cryptocurrency market. On Monday, the Federal Reserve injected 6,800 million dollars into the financial system.
The most important data on the U.S. GDP will be released today, Tuesday, and on Wednesday, unemployment benefit claims will be published. Thursday is a holiday in the market, and the Chinese data on M2 money supply will be released on Friday.
The U.S. GDP will register an annual growth of 3.2% in the third quarter today. This figure is slightly lower than the previous 3.8%, but indicates a strong growth rate. According to analysts, this could influence the anticipation of the upcoming measures by the Federal Reserve.
The U.S. economy appears to be gaining momentum after contracting in the first quarter. A growth rate of 3.2% would confirm a sustained recovery by the end of the year. The Bureau of Economic Analysis will also release the GDP Price Index, a key indicator of inflation, along with the overall GDP.
This index is used to measure inflation for all goods and services produced locally. It was 2.1% in the second quarter, compared to 3.8% in the first half. This is a very important figure that the Federal Reserve closely monitors for policy formulation. A low value would affect subsequent rate determinations.
The Fed's GDPNow model indicates that growth will be 3.5% in the third quarter, which is projected to be higher than expected. However, the U.S. dollar index has shown weakness ahead of the release, indicating hesitance in the market.
U.S. GDP data is modifying positions that investors are adjusting regarding how the data would alter the direction of monetary policy.
Since the cryptocurrency market is still susceptible to macroeconomic data, the current release could generate new volatility. Traders will watch how prices react and whether they continue to decline or a relief rally occurs.
