The investors will see the new data on US Consumer Confidence. The latest numbers on Existing Home Sales will be released. The Bureau of National Statistics will announce final US Gross Domestic Product (GDP) numbers. The core PCE inflation rate for the US in February will be released.
In the last week of trading, the key cryptocurrency Bitcoin (BTC) did not make sustainable progress. Despite ongoing problems in the banking sector, the US Federal Reserve Bank (Fed) raised interest rates again by 0.25 percent to 5.00 percent in mid-2019. week.
Bitcoin moved in this 8 percent trading range until the weekly close yesterday. Meanwhile, the banking sector in both the US and Europe came under renewed pressure. The vast majority of financial institutions ended the week close to their weekly lows.
Account holders in the US recently withdrew about $100 billion from large and small US financial institutions. Although the US Treasury Department, after a joint meeting with the Fed and FDIC, once again assured that the financial system would function flawlessly and resiliently, US financial authorities recently considered extending the emergency line of credit to other banks.
US Consumer Confidence Figures
On Tuesday at 16:00 (CET), the Conference Board (CB) will release new US Consumer Confidence figures for the March trading month.
For the month of March, market experts expect a further drop to 101.0. If the forecast is beaten, the US Dollar Index (DXY) is likely to continue the bullish move from last week and could act as a headwind for Bitcoin.
Financial markets should welcome continued weakness in consumer confidence as it would further increase the possibility of interest rate cuts in the coming months.
Pending US Home Sales
The latest US Existing Home Sales figures will be released on Wednesday at 16:00 (CET). Since Existing Home Sales account for about 90 percent of the US housing market, this metric is an important component in assessing US consumer spending.
A complete collapse of the housing market is likely to exacerbate the banking problems in the US and send the US economy into recession. As a result, the US Federal Reserve would have to lower interest rates faster than anticipated.
US Gross Domestic Product
While waiting for the release of the final US gross domestic product figures for the last quarter of 2022, analysts currently anticipate economic growth of 2.7 percent in said period. If the final figures confirm the latest estimate of 2.7 percent, the market reaction could be positive. The Bitcoin price should also trend bullish.
More recently, market participants gave a positive assessment of a strong gross domestic product. If there is renewed weakness, Jerome Powell is likely to continue to come under pressure. So it would be conceivable that the market would rate bad GDP data positively. Rarely have market players been so torn in their interpretation of this important indicator.
Core PCE Inflation Rate for the US in February
At 7.2 percent, the experts’ forecast is well below the final inflation rate of 8.5 percent from the previous month. However, with UK inflation data rising significantly, contrary to expectations, and again in double digits at 10.4 percent, data for Europe could also be above expectations. The result is likely to have a negative impact on the stock market.
By Audy Castaneda