Another busy week is shaping up on the US economic calendar with key inflation data and the minutes from the March Federal Reserve meeting.

Core Consumer Price Index (CPI) figures are due out, and market participants eagerly await them as they are a leading inflation indicator.

Additionally, the Q1 2024 earnings season kicks off on Friday with reports from some of the country’s leading banks.

Key Events This Week:

1. March CPI Inflation data – Wednesday

2. Fed Meeting Minutes – Wednesday

3. March PPI Inflation data – Thursday

4. Initial Jobless Claims data – Thursday

5. MI Consumer Sentiment data – Friday

6. Total of 8 Fed speaker events this week

Will…

— The Kobeissi Letter (@KobeissiLetter) April 7, 2024

Economic Calendar

The March Core CPI data is due on Wednesday. This report is one of the two key indicators used to measure inflation, with the other being the Personal Consumption Expenditures (PCE).

CPI reflects the price trends in the economy and has a direct impact on the Federal Reserve’s policy rate decisions. The figures are expected to fall a tiny amount, according to Market Watch.

Thursday will see March’s Producer Price Index (PPI) report, which reflects input prices for producers and manufacturers.

This index measures the costs of producing consumer goods which directly affects retail pricing and is seen as a good pre-indicator of inflationary pressures.

April’s Michigan Consumer Sentiment Index and preliminary Consumer Inflation Expectations reports are due on Friday, April 12.

These reports provide the results of a monthly survey of consumer confidence levels and views of long-term inflation. Consumer confidence directly impacts spending, which contributes around 70% of the country’s GDP.

The minutes of the March Fed FOMC meeting are on Wednesday and several central bank speeches are scheduled for this week. Fed policymakers, including Chair Jerome Powell, do not appear convinced that inflation has subsided so will be looking towards these reports for evidence either way.

The official inflation rate in America is 3.2%, with a forecast increase to 3.4% for March, which may induce market volatility.

Crypto Market Outlook

Crypto markets have remained relatively stable over the weekend with total capitalization at $2.71 trillion on Monday morning in Asia.

Bitcoin had a brief spike of over $70,000 on Sunday but quickly retreated back to $69,500, where it had been trading tightly for the past 24 hours.

Ethereum has gained 1% on the day to reach $3,420 at the time of writing. The altcoins are mostly in the red this Monday morning, with heavier losses for Solana and Litecoin.

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