Incoming volatility? 3 things you should pay attention to this week
Incoming volatility? 3 things you should pay attention to this week
The cryptocurrency market has become more atypical in the past few days, but all of this can change this week because there are several important events and announcements from the largest economy in the world.
It begins with the statement by the US Federal Reserve Chairman before the congress and extends to unemployment claims and the unemployment rate.
powell as a witness
The US Federal Reserve turned its monetary policy after the Covid 19 pandemic began to flaw and began to increase the interest rate quite aggressively in order to combat the galloping inflation. The past FOMC sessions have all led to interest increases, some of them around 75 basis points. However, the Fed slowed down at the end of 2022, and the beginning of the new year brought a similar mood.
Fed chairman Jerome Powell will go to the Capitol Hill on Tuesday and Wednesday to make two separate statements about the future monetary policy of the central bank. Most experts believe that Powell will only double the plans of the bank to increase interest rates by 25 basis points, as she has done lately.
others claimed that the Fed would not raise interest rates as previously feared to 6 %. Nevertheless, most financial markets, including the highly volatile crypto room, have calmed down while waiting for the results of the two meetings. Even the dollar has felt the consequences with a little burglary.
Federal_Reserve
unemployment claims
On Thursday, one day after Powell's second statement, the United States should announce the latest data on unemployment claims. This is a weekly report by the US Ministry of Labor, which shows the number of people who apply for unemployment insurance benefits.
It consists of two different types of claims- first and follow-up claims. The former shows the number of people who have submitted for the first time while the latter are those who did this at least once before.
As an important indicator of the current economic situation, unemployment claims usually lead to low volatility on the stock markets and in crypto, especially if they are higher than expected. In such cases, risky assets such as cryptocurrencies tend to decrease.
unemployment rate and Fed budget
Friday will throw more light on the US economy, with the unemployment rate coming at 8:30 a.m. The estimates indicate that the percentage of 3.4 % will remain the lowest value since 1969 as in the previous month. Further expectations regarding the job report indicate that the United States created around 200,000 jobs in February, which represents a remarkable decline compared to the previous month.
The household of the Federal Reserve closes the week at 2:00 p.m. EST, which shows the expenses and income of the largest economy in the world. The government previously passed the budget of $ 1.7 trillion for 2023, with the $ 45 billion that was assigned to Ukraine.
viewed from the perspective of the cryptom market, all the above factors seem to be potential catalysts for the upcoming price volatility, especially in view of the stagnating price movements of the past few days. Large price movements are generally followed on such rare occasions.
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