Investors Prepare for Market Shifts as PCE Data Approaches – BitRss

This week is not particularly intense for cryptocurrencies; however, preparations for the end of the month are expected to impact the market. The upcoming PCE data, scheduled for release at the end of the month, is anticipated to create pressure on investors, especially following Powell’s comments regarding the Producer Price Index (PPI). What are QCP analysts thinking?

Key Developments of the Day

The PCE data is set to be released at the end of the month. Powell stated last week, “We will watch the PPI and thus have an idea about the PCE.” The PPI came in significantly higher than expected, suggesting that the forthcoming PCE data will likely exert further pressure on the markets.

As inflation rises, if the PCE figures are also high, we may find ourselves in a troubling situation where the Fed will not consider any interest rate cuts this year, and discussions about potential increases may arise. With expectations for easing being pulled back to the most basic scenario, any data favoring interest rate cuts will be extremely supportive for the cryptocurrency markets. The worst-case scenario for easing has already been priced in.