This will be important for crypto and bitcoin this week

After a bearish last week with new significant lows in the classic financial markets as well as in the crypto market, Bitcoin and Co. start. the new trading week with positive signs. Below you can read which dates in the new trading week may affect prices in the crypto sector.

As the US officially takes a holiday today, and ordinary stock trading in the US only starts again tomorrow, Tuesday 21 June, no fresh impulses are expected from overseas traders at the beginning of the week.

Consumers and their behavior are in focus this week

Relevant data on sales of existing homes in the United States for the month of May will be published as early as tomorrow Tuesday. Existing home sales indicate monthly sales of existing homes in the United States. Analysts expect that the number of home sales will continue to fall when the announcement comes at. 16:00 (CET). 5.39 million sales are expected in the calculation period for May 2022. In the previous month, 5.61 million house owners changed owners.

Existing home sales make up about 90 percent of the U.S. housing market, which is why it is used as an important measure of consumer spending. If the number of homes sold is higher than expected, this indicates increasing consumption. Home sales thus reflect consumer confidence. In addition to retail sales, this key figure is an important indicator of the end consumer’s purchasing power.

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The UK Consumer Prices and Fed Chairman Powell’s statement in the middle of the week

The following Wednesday, 22 June, the Office for National Statistics of the United Kingdom (UK) publishes the Consumer Price Index for the month of May at. 08:00 (CET). Market participants predict an increase of 0.6 percent over the previous month. A higher reading is likely to further increase pressure on the Bank of England (BOE) and necessitate further rate hikes.

Also on Wednesday at 15.30 (CET), the head of the US Federal Reserve, Jerome Powell, will comment on the current US fiscal policy. In addition, Powell is likely to provide an overview of possible developments in monetary policy measures by the Fed in the coming months. Statements by the head of the Fed are traditionally accompanied by increased volatility in the financial markets.

Weekly unemployment figures and current crude oil inventories for the United States

Thursday, June 23 at At 14:30 (CET), the number of first unemployment claims in the United States will be announced. 225,000 new initial applications are currently expected. Compared to the previous week, this estimate is around 11,000 first applications higher than June 16th. If the forecast is exceeded and more US citizens apply for unemployment benefits, the Fed may again consider fiscal easing to counteract a further deterioration of the labor market situation.

Later in the afternoon at 17:00 (CET) the weekly US crude oil inventories will be released. Trader’s forecast for the week is 1.956 million barrels of crude oil. Lower demand coupled with rising inventories is seen as an indication that economic activity in the United States appears to be cooling. This development makes a recession more likely.

Michigan Consumer Confidence Index in Focus

On the last trading day of the week, June 24, at 16:00 (CET), several relevant key figures will be presented. First, market participants look at several key data published by the University of Michigan. In particular, one should pay attention to the expectations of consumers in private households in the United States. They are considered a measure of American consumers’ buying behavior. Analysts predict a value of 46.8 for the month of June. This forecast is at a low point in 10 years. Consumer expectations were last rated so low in 2011. If this value is even underestimated, the Fed should be back in action again in the medium term. A further decline in consumer behavior among U.S. citizens could prompt the US Federal Reserve to provide additional emergency assistance to private households.

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Consumption surveys of other U.S. households

In addition to consumer expectations, the new US home sale for May will be announced at. 16:00 (CET). This key figure must be assessed in the same way as home sales of existing homes. Market participants estimate that 585,000 new homes will be sold in May. If this value is lower than the experts’ forecast, this can be seen as a further indication of declining consumption in private households. Here, too, the US Federal Reserve was to create new incentives in the medium term to increase consumer confidence and thus consumer consumption again in the medium term.

Continued weak economic data in the US increases the likelihood of a fiscal U-turn from the Fed. Monetary easing by the US Federal Reserve should also have a positive impact on the crypto market and help calm global financial markets.

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