Watch Out for These 3 Key US Economic Events This Week

1. Consumer Price Index Report

The US Bureau of Labor Statistics will release the Consumer Price Index report for September on Thursday, October 10. The CPI is one of the crucial gauges of inflation; its impact on the crypto and stock markets will be crucial. Analysts are expecting a slight 0.1% increase in headline inflation while core CPI-excluding food and energy-is projected at plus 0.2%. 

Key points on CPI: 

• Headline CPI: Should retreat to 2.3% year-over-year from 2.5% in August. 

• Core CPI: Seen steady at 3.2% year-over-year. 

If the inflation data proves hotter than expected, that could indicate the Federal Reserve will throttle back future interest rate cuts. In such a case, Bitcoin could have limited upside because a hot inflation report would indicate that the inflationary pressure is still extant. 

2. Producer Price Index (PPI) Report

This week, the Core PPI will be released. The PPI is a measure of inflation at the wholesale level and essentially shows where inflation occurs during production. Increasing PPI suggests that higher production costs will eventually bleed down to consumer prices and could eventually impact the cost of mining crypto. 

Key points regarding PPI: 

• Higher PPI might equate to rising energy and hardware costs in mining.  

• A sharp increase in the PPI will have a bearing on Bitcoin and other cryptocurrencies, as increased operational costs for enterprises dealing in crypto. 

3. Initial Jobless Claims

Thursday will also bring the latest jobless claims report as the US economy created 254,000 jobs last week and reduced the nation’s unemployment rate to 4.1%, according to last week’s strong jobs data.  

Such a strong pace of job growth has argued that the Federal Reserve might have landed a “soft landing” for the economy, in which inflation cools without sending the economy into recession. 

However, with inflation falling and jobs numbers strong, investors are growing wary of how much further the Fed will cut rates. Indeed, there is a growing sense that the central bank may have gotten ahead of itself in cutting rates 50 basis points last month, particularly underestimating the hardiness of the inflation threat at the same time. 

Corporate Earnings Ahead 

Besides these economic reports, the Q3 corporate earnings season kicks off this week. Major financial companies like JP Morgan, Wells Fargo, and BlackRock report this Friday. These earnings could contribute to the further signs of market sentiment that have been moving Bitcoin’s prices further. 

As the market digests these events, Bitcoin changes hands at about $63,533, up 2.47% in the last 24 hours. 

Event Recap: