Bitcoin Price Falls Again After Strong US Labor Market Data – Fed Focuses

An announcement: Potential currency fluctuations may affect returns.
An announcement: Past performance or simulations are not a reliable indicator of future performance.

Bitcoin Price Falls Again After Strong US Labor Market Data – Fed Focuses

A very strong US jobs report caught crypto investors off guard on Friday afternoon. A continued upturn in the U.S. job market dampens expectations of interest rate cuts. All eyes can now turn to the central bank meeting next Wednesday.

272,000 new nonfarm jobs in May – unemployment rate rises to 4.0 percent

Outside agriculture, 272,000 new jobs were created in May, more than expected (185,000) in the world’s largest economy. After selling 175,000 units in April, it was 165,000 units from the previous month. The separately determined unemployment rate rose to 4.0 percent in May, which was higher than expected (3.9 percent).

The US Federal Reserve meets on Wednesday – an interest rate cut is expected

The US Federal Reserve (Fed) keeps interest rates higher to reduce inflation, but without shutting down the economic engine.
The US Federal Reserve will meet next Wednesday to decide on future key interest rates. The interest rate is currently quoted at 5.25 to 5.50 percent.
CME Group’s “Fed Watch Tool” currently sees a 50 percent chance that a rate cut of 25 basis points will not occur until the September meeting.

The shape of future US monetary policy may well determine the fate of futures in the coming days. The prospect of global capital market interest rates falling is considered a major influencing factor for interest-free investments such as Bitcoin (USD). As expected, the European Central Bank (ECB) already rejected interest rate screws for the Eurozone on Thursday and initiated a change in interest rates. The central bank is unlikely to follow suit next Wednesday. In this case, the Fed Watch tool expects a 99.4 percent chance of a break.

See also  Heinz Hoenig leaves the wild camp

Leave a Reply

Your email address will not be published. Required fields are marked *