tl;dr
This week features key US economic events, including June's CPI, PPI, and Retail Sales reports, as well as July's Michigan Consumer Sentiment Index, all critical for assessing inflation and consumer behavior ahead of the Federal Reserve's July meeting. Despite President Trump's announcement of 30% t...
A significant week awaits on the US economic calendar with key inflation data releases expected, while Bitcoin recently reached another record high. Crypto markets sustained last week's upward momentum over the weekend and pushed higher again Monday morning in Asia, potentially fueled by anticipation of favorable US inflation reports.
Despite President Trump's announcement of 30% tariffs on the European Union and Mexico late last week, crypto markets showed little reaction. Meanwhile, US stock futures experienced minor drops amid the initial response to the tariff announcements. The second quarter earnings season is about to commence, and the Federal Reserve's July meeting is approaching in two weeks.
Key economic events from July 14 to 18 begin with Tuesday's June Consumer Price Index (CPI) report, a vital inflation gauge influencing Federal Reserve decisions, consumer sentiment, and spending patterns. Expectations point to a 0.23% to 0.25% increase, with ongoing inflation pressures particularly in energy and tariff-affected goods. Wednesday brings June's Producer Price Index (PPI), revealing cost trends among producers that serve as a leading inflation indicator.
Thursday's June Retail Sales report will shed light on consumer spending habits across durable and non-durable goods, providing an early measure of economic health. On Friday, July's Michigan Consumer Sentiment Index and Inflation Expectations reports will offer insights into consumer confidence and long-term inflation outlooks. Thierry Wizman, a strategist at Macquarie Group, notes that while markets are less worried about inflation than before, disinflation is not yet the prevailing trend.
Big banks including JPMorgan Chase, Wells Fargo, Morgan Stanley, and Goldman Sachs will kick off earnings season this week, serving as key markers for market sentiment. Meanwhile, the crypto market's total capitalization rose Monday morning to $3.8 trillion, its highest since mid-January, driven primarily by Bitcoin's 1.7% surge to an unprecedented $119,750 in Asian trade.
Ethereum has reclaimed the $3,000 level, with most altcoins posting gains; notably, Stellar and Hedera surged more than 20%, indicating robust activity across the crypto space as investors watch inflation data and earnings season closely.