Cautious markets ahead of central bank conference on Friday
The Daily Brief is brought to you in partnership with BCB Group, Vault12 and World Mobile.
📊 Hot PPI surprise — Producer prices rose more than expected, raising inflation concerns.
🦉 Jackson Hole central bank conference — Analysts expect Fed Chair Powell to wait and watch rather than signal bold moves.
💸 Crypto pullback — BTC down 2.2%, ETH down nearly 5% after strong gains.
📉 Stocks softer — S&P 500 and Nasdaq 100 start the week slightly in the red.
Crypto and stock markets start the week on a cautious note after last week’s hotter-than-expected Producer Price Index (PPI) numbers caught investors and analysts off guard. PPI measures the average change in prices that producers receive for their goods and services, essentially wholesale inflation. When it comes in high, it suggests rising costs for businesses, which can eventually trickle down to consumers and fuel broader inflation. The report has cast doubt on the Fed’s next move in September, when many expect the US central bank to cut rates by 0.25%. Some now say it may not be the done deal many anticipated.
The big event of the week is a central bank conference in the US on Friday, where Fed Chair Jerome Powell will deliver a closely watched speech. In the past, Powell has used this platform to hint at future monetary policy direction. But given concerns about the lingering inflationary effects of US tariffs, he may keep his comments vague. “Odds are that he will be more of an owl—waiting and watching—than either a hawk or a dove,” Yardeni Research noted on Sunday.
Bitcoin (BTC) is down 2.2% overnight, while Ethereum (ETH) is in the red by almost 5% after its blistering run in recent weeks. It’s a similar story across the board, with only a few outliers posting gains over 24 hours.
US stock markets are also slightly weaker, with the S&P 500 and Nasdaq 100 marginally in the red this morning.
Will Powell give investors more clarity on Friday? Or will he, as some analysts suggest, keep September’s rate decision shrouded in ambiguity? Big questions for the week ahead.
In the markets…
🌍 Total crypto market cap ↘️
The global crypto market cap is approximately $3.88 trillion, down 2.95% over the past 24 hours.
🟠 Bitcoin (BTC) ↘️
Price: $115,322 down 2.08% in the last 24 h.
Daily high: $118,514
Daily low: $115,133
📈 S&P 500 ↘️
SPY is currently down about 0.29% since yesterday’s close.
📈 Nasdaq 100 ↘️
The Nasdaq 100 is down about 0.51% overnight.
😐 Fear & Greed Index
The Crypto Fear & Greed Index stands at 56/100, in Neutral.
📊 Bitcoin Relative Strength Index (RSI) (14)
The 14-day RSI for BTC is approximately 56, in neutral territory.
Data is correct as at 18 August, 07:07 GMT.
Cautionary Notes
It's definitely tempting to get swept up in the excitement, but please heed these words of caution: Do your own research, only invest what you can afford, and make good decisions. The indicators contained in this article will hopefully help in this. Remember though, the content of this article is for information purposes only and is not investment advice or any form of recommendation or invitation. The Digital Commonwealth always advises you to obtain your own independent financial advice before investing or trading in cryptocurrency.
