As the new weeks begin, the US Economic Calendar is packed with crucial events that will put inflation back in the spotlight. The Consumer Price Index (CPI) report, scheduled for Thursday, is highly anticipated as it will determine whether inflation continues its downward trend or stagnates near 3%.
This news article will provide an in-depth analysis of upcoming economic events, their potential impact on the US markets, and how they will affect various sectors, including the cryptocurrency space and banks.
Impact of the CPI report
The CPI report is of utmost importance as it will help markets evaluate the Federal Reserve's policies and its efforts to reduce interest rates. It has forecast a 0.2% rise in consumer prices in December, which would halt some of the recent progress on inflation, as the annual price increase could rise to 3.3% and 3.1%. %. This could have a knock-on effect on the Federal Reserve's policies and its efforts to lower interest rates.
Monthly budget deficit
In the upcoming monthly budget deficit announcement on December 11, analysts predict a staggering $62.5 billion, contributing to the already unprecedented $34 trillion national debt. This trend has raised concerns among economists and financial experts about its possible impact on the economy and financial markets. High levels of debt could lead to higher interest rates and inflationary pressures, which could cause a slowdown in economic growth, making borrowing more expensive for individuals and businesses and eroding consumers' purchasing power.
ARK 21Shares Spot Bitcoin ETF
The Securities and Exchange Commission's decision on Wednesday, December 10 regarding the ARK 21Shares Spot Bitcoin ETF is highly anticipated. Analysts are confident that the regulator will approve all applications simultaneously to avoid first-mover advantage. However, a denial could cause a further dump in the cryptocurrency market, while an approval could initially cause prices to rise.
Bank Earnings Calls
An intense call session on banking results is scheduled for Friday, December 12. Banks such as Wells Fargo, Bank of America, BlackRock, BNY Mellon, Citigroup and JPMorgan Chase will release their quarterly reports during this time. These events are unlikely to significantly impact crypto markets unless there is a denial from the SEC resulting in a major dump. However, they could provide insights into the health of the banking sector and possible future trends.
The long-awaited approval of the Bitcoin ETF
The Securities and Exchange Commission has rejected many ETF applications so far and this year 2024. It started with a lot of hope from investors, and its main reason is the increase in the value of Bitcoin, which is currently trading at $43,643. Many well-known personalities in the crypto space have predicted the approval of the ETF, as expected on January 11. The effect of the approval will have many beneficial impacts on the crypto market, and the fall will also have its losses.
Key economic events in the US this week include the release of the CPI report, the announcement of the monthly budget deficit, the SEC's decision on the ARK 21Shares Spot Bitcoin ETF, and bank earnings calls. These events could affect inflation, interest rates, financial policies, crypto markets, and the health of the banking sector.
