3 things that could move the markets with big inflation reports for this week

Crypto markets rallied over the weekend with big gains for altcoins as Bitcoin broke above $81,000 in new price discovery zones.

Last week, two big catalysts kicked into action with a landslide victory for Donald Trump in the US presidential election and the Federal Reserve cutting interest rates by another 25 basis points.

Fed Chairman Jerome Powell reiterated his position that the central bank’s future policy decisions will continue to depend on these economic reports and key inflation data will be released this week.

Economic events from November 11 to 15

Powell signaled that he believes rates remain tight even after last week’s cut, suggesting inflation appears to be on track toward the Fed’s 2 percent target. In addition, his comments opened the possibility that the central bank could stop these reductions at its next meeting in December.

The October CPI inflation report is due on Wednesday, and this data is one of two key indicators used to measure inflation. The second is the PCE report. CPI data reflect price trends in the economy, shape consumer spending and business outlooks, and directly affect the Fed’s policy-making decisions.

The October producer price index (PPI) report, which reflects input prices for producers and manufacturers and measures the costs of producing consumer goods, will be released on Thursday. This directly affects retail prices and is a leading indicator of the following month’s CPI and overall inflation outlook.

Key events this week:

1. OPEC Monthly Report – Tuesday

2. CPI inflation data for October – Tuesday

3. October PPI inflation data – Thursday

4. Fed Chairman Powell speaks on Thursday

5. Retail sales data for October – Friday

6. Total of 12 Fed speaker events this week

We have another…

— Kobeissi Letter (@KobeissiLetter) November 10, 2024

October retail sales reports, which provide information on how much money consumers spend on both durable and non-durable goods in the US, will be released on Friday.

Fed Chairman Powell will speak on Thursday and several other central bank speeches are planned for the week.

“Markets will also continue to digest earnings season, the outcome of the election and the Fed meeting,” Kobeissi’s letter commented.

Bitcoin reaches $81,000 ATH

The crypto market capitalization has risen to its highest level since the peak in mid-March, reaching $2.88 trillion after a weekend of solid gains for most crypto assets.

Bitcoin hit an all-time high of $81,800 in late trading on Sunday and remains above $80,500 at the time of writing, indicating that the momentum could continue.

Ethereum also continued its rise, surpassing $3,200 over the weekend and holding on to gains during Monday morning’s Asian trading session.

Altcoins also rose with big gains for Dogecoin (DOGE), Cardano (ADA) and Shiba Inu (SHIB) over the weekend.

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