The rally in the cryptocurrency sector continued to gain momentum in the last week of trading and sent the price of the key cryptocurrency Bitcoin (BTC) rising to a new year high of $31,443.
The largest cryptocurrency braced against a price consolidation in US stock markets. The Nasdaq100 technology index posted its first weekly decline since mid-April at -1.4 percent.
Fed chief Jerome Powell acknowledging stablecoins as a type of money in its annual survey by the Senate is also positive.
New statements from the International Monetary Fund (IMF), which has so far been more hostile to cryptocurrencies, could also be interpreted as stabilizing.
After the negative news about the SEC lawsuits against Binance and Coinbase in the middle of the month, the tide seems to be turning, which is reflected in the widespread price recovery in the crypto market.
US Consumer Confidence Opens Business Week
This Tuesday, the Conference Board (CB) will release the monthly US consumer confidence data for the month of June. At 102.3 in the previous month, the assessment of the economic performance of private households in the US was above the expert forecast of 99.0.
For June, market watchers forecast a rise to 104.0. If the estimates are undermined and even below the figures presented for the previous month of May, this would increase the likelihood of a US recession.
Fed Chairman Powell and ECB President Lagarde Appear on Camera at the Same Time
In addition to US Federal Reserve Chairman Powell, and European Central Bank (ECC) President Lagarde, Andrew Bailey, Chairman of the English Central Bank (BOE), also appears on camera, probably to address the current interest rates and the monetary policy of their central banks in their speeches, as well as to provide an assessment of inflation trends in the coming months.
While Powell is likely to focus on the recent pause in US interest rates due to the further decline in US consumer prices, Lagarde and Bailey in particular will discuss further moves in interest rates.
US Bank Annual Stress Test
On Wednesday night, the US Federal Reserve will announce the results of the stress test of US banks. Market participants will be closely watching the health of midsize banks in the US If some regional banks fail the test, a significant increase in volatility in the US financial sector can be expected as a result.
Gross Domestic Product in the US
On Thursday, the latest advances in US gross domestic product for the first quarter of 2023 will be released. Although preliminary forecasts for growth of 1.3 percent were again slightly above estimates of 1, 1 percent, are still well below the final figures for the last quarter of the previous year.
With economic growth of 2.6 percent, these were double what is currently forecast. Analysts slightly raised the latest estimates of 1.4 percent again.
US Core PCE Inflation to End the Week
The core inflation rate in a monthly comparison was +0.4 percent again above the expert forecast of +0.3 percent. For May, analysts expect a further increase of +0.4 percent. If core inflation is higher than experts’ expectations, investors are likely to rate it negatively.
If, on the other hand, the core inflation rate rises less than analysts expect, the financial market should end the trading week on a positive note.
By Audy Castaneda
