Crypto performance was very mixed this week. BTC and ETH remained relatively unchanged, with BTC holding steady at the 30,000 level and ETH trading above USD 1,850.
Last week’s top performer, BCH, continued to show strength, advancing another 8.3% to reach USD 281, while LTC gained 11% and is now trading at USD 95.
Stock markets saw a slight decline, with SPX (-0.9%), NDX (-0.6%) and RUT (-2.5%).
On Monday, Swiss inflation data revealed a year-over-year price increase of 1.7% for June, which was slightly lower than the expected 1.8%. Although these numbers may seem low when compared to the inflation rates in the rest of Europe and the US, it is important to bear in mind that Switzerland has a different benchmark.
There is a possibility of the SNB considering further rate hikes after their next policy assessment in September.
The release of the FOMC Minutes on Wednesday did not provide much new information, and the markets showed little reaction. Most of the FED members favoured pausing the rate hikes in June after 10 consecutive hikes, in order to assess the impact on inflation and the economy. Additionally, 16 out of 18 officials expect the policy rate to be raised by at least another 25 bps by the end of the year.
Currently, the market is pricing in a high likelihood of another 25 bps hike during this month’s meeting, followed by steady rates until the end of the year, with some chance of a second 25 bps hike.
US rates increased this week, with the 10-year and 30-year treasury rates both rising above 4%.
On Thursday, the ADP Employment Change for June was released and exceeded expectations, showing that 497k more people were employed compared to the consensus estimate of 228k. This indicates that the US labour market is still performing strongly, which is a worrisome sign for the sticky core inflation. The ISM Service PMI for June also came in higher than expected at 53.9, compared to the anticipated 51.
Key figures to keep an eye on will be the Nonfarm payrolls later today, China’s CPI next Monday, and the US’s CPI next Wednesday.
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