- The market is tense ahead of the new Fed meeting
- And waiting for new economic data
- They will bring more clarity to the picture
The week begins without significant developments in the crypto market. Bitcoin is trading at $26,800, down 1.13% from yesterday.
BTC lost 4.33% in the last seven days and is now moving sideways.</nbsp;
It is difficult to predict a move so far as investors have remained neutral for over a week.. Their attention has shifted to the new U.S. Federal Reserve Board meeting (June 14).
This week, financial markets are expecting a number of important events and publications that will draw the attention of investors around the world.. These are decisions of central banks of different countries, PMI in the U.S. and China, new economic forecasts and much more. All of these factors will affect the markets.
Monday: China and US services PMI
One significant surprise that could come in the coming months could be Chinese economic stimulus. We received our first signal about this on Thursday. The manufacturing purchasing managers’ index rose to 50.9 in May, exceeding expectations (49.5 points).</nbsp;
The Middle Kingdom will release its services PMI today. If it also exceeds (or coincides with) the forecasts, we can confidently say that China is building up the strength of the yuan and weakening the dollar. Combined with positive crypto news, this could help the bitcoin chart.
Also today, the U.S. service sector PMI will be released. It is expected to fall slightly (from 51.9 to 51.8). The metric as a whole affects market sentiment and U.S. monetary decisions.
Other metrics on Monday include the German trade balance, inflation in Switzerland, the PMI in Germany, Italy, France and the Eurozone, the Eurozone business sentiment index (Sentix).
Tuesday. Hearing on the Future of Digital Assets in the U.S.
The U.S. Agriculture Committee will hold a hearing Tuesday on “The Future of Digital Assets: Providing Clarity to Spot Markets for Digital Assets.”
The priority issue will be regulation of the industry. The unfriendly U.S. cryptocurrency climate has prompted leading players to expand into new countries, bringing innovation abroad. So the market will be watching the news closely.
This is what Ripple policy head Susan Friedman wrote about it:
“While the upcoming HFSC hearing on June 13 is important for cryptocurrency, next week’s House Agriculture Committee is also important. Congressman G.. Т. Thompson has been a staunch supporter of the call for clarity on this issue.”
Other Tuesday events: retail sales in the Eurozone, orders in the German economy, PMI from Canada.
Wednesday. U.S. Trade Balance
The U.S. will disclose its trade balance on June 7. It records monthly transactions of all goods and services exported and imported from abroad. Experts’ forecasts are at -$63.30 billion (negative balance, but above the previous $70.60 billion ).
As with all macro data from the U.S., the trade balance will be interpreted in terms of a possible recession. Strong performance is likely to improve market sentiment. Because the bulls are making sure that there is no global recession (or it would not be noticeable), and the Fed seems to be at the end of the cycle of monetary tightening. Will it turn out to be wishful thinking? We’ll find out on Wednesday.
Thursday. Fed Balance Sheet Volume and the Release of SEC Papers with Hinman Speech
The Fed will show its balance sheet volume on June 8. Skeptics expect to see strong outflows of foreign investment in government securities here. If the rumors are true, we can expect a weakening of the dollar index, as well as more volatility in the market. In general, analysts will assess the composition of reserves and make projections for the future. So we’ll keep an eye on this topic.
Investor interest in the ongoing SEC and Ripple dispute will increase again. Regulator to release unedited versions of documents related to William Hinman speech. The XRP community is hoping this will help them win the lawsuit.
Some consider Ripple’s complete victory almost a revolution and a success for the entire industry in the United States. Others believe this could lead to additional years of litigation, and the SEC will likely appeal a Ripple victory.
Either way, if the court sides with Ripple, the crypto-asset space will be given a clean slate to move forward. We expect the market to react to any hints that the parties will come to an agreement.
This week, [cryptocoin_informer coin=”XRP” provider=”whitebit” rose 8.05% to $0.52. That’s on the back of the cryptocurrency market falling 1.83% to $1.106 billion.
Other metrics Thursday: Eurozone GDP and U.S. jobless claims (both important metrics in terms of stock market sentiment)
Friday
China will release consumer CPI inflation on Friday. It is expected to fall from 0.4% to 0.3%. If it does, we will have another confirmation that this economy is gaining strength.
Friday