What to Expect from US Economic Indicators This Week
This week will be one of the most important in the U.S. economic landscape. Several important indexes, ranging from housing starts to consumer confidence, are expected to be released in the coming days. The crypto community is closely following every development in the traditional economy. Let’s take a look at how these indices might impact cryptocurrency market. Here’s everything you should know!
How housing starts affect cryptocurrencies
The U.S. Housing Starts Index, which shows the number of new home construction projects that have begun in any given month, is due to be released tomorrow. September’s figure was 1.354 million units, lower than TEF’s forecast of 1.38 million units. Furthermore, its performance failed to exceed August’s 1.361 million units. This time, the market consensus is that the index will fall slightly to 1.34M.
An index exceeding consensus would signal the economy’s resilience, which could reduce the appeal of cryptocurrencies.
Philadelphia Fed Manufacturing Index and Cryptocurrencies
The Philadelphia Fed Manufacturing Index is based on the Philadelphia Manufacturing Business Outlook Survey and is expected to be released on Thursday, November 21. In October, the figure was 10.3 points – well above the consensus of 3 points. It is worth noting that the index was only 1.7 points in September. This time, the market consensus is that the index will cool down to 7 points. TEForecast, meanwhile, expects the number to jump to 11 points.
If the index rises as TEForecast predicts, it will add to the growing strength of traditional markets and thus pose challenges for the cryptocurrency industry.
Existing Home Sales and Cryptocurrency Sentiment
The U.S. existing home sales index will be released on Thursday, November 21, and the index hints at people’s confidence in the U.S. economy. In September, the number was 3.84 million, down from 3.88 million in August. Last month, the consensus actually suggested better performance, and this time around, the consensus also suggests improvement. TEForecast predicts the index will be 3.87 million.
If the index exceeds consensus, it could have a negative impact on the cryptocurrency market, as strong home sales reflect rising economic confidence.
Manufacturing PMI reveals the future of cryptocurrency
The S&P Global Preview US Manufacturing PMI, based on a survey sent to purchasing managers, is scheduled for release on Friday, November 22. In September, the index fell to a 15-month low of 47.3. However, there was a slight rebound in October, rising from 47.8 to 48.5.
The drop in PMI could prompt investors to move toward cryptocurrencies as the drop in PMI heightens fears of an economic slowdown.
Michigan Consumer Confidence: Opportunity or Risk for Cryptocurrency?
The Michigan Consumer Confidence Index will be released on Friday, November 22, and this report will give you an idea of consumer expectations. Last time, it surged from 70.5 points to 73 points, significantly better than the consensus of 71 points. This time around, the consensus is not expected to change.
Rising sentiment has boosted confidence in traditional investments, which could make cryptocurrencies less attractive in the short term.
Crypto markets are sensitive to macroeconomic indicators. Strong data could lead to a bearish trend, while weak data could boost cryptocurrencies as a hedge.
