• This week, key US economic data is due which could move the cryptocurrency market.
• The ISM Manufacturing and Services PMI, ADP Employment Change and Non-Farm Payrolls are three events to watch this week.
• If the US dollar’s volatility rises, so will Bitcoin’s and the entire cryptocurrency market will be more active.
Key US Economic Data
The final week of July is ahead of us, and cryptocurrency traders might want to consider what happens with the US dollar. After all, Bitcoin’s consolidation around $30k in the past few weeks brought little or no activity in the market. Therefore, should the US dollar’s volatility rise in the week ahead, Bitcoin’s volatility may rise too. Consequently, the entire cryptocurrency market will be more active if Bitcoin’s volatility rises.
ISM Manufacturing and Services PMI
The PMI data is calculated monthly and interpreted in relation to the 50 level. A print bigger than 50 shows an expanding sector, while one above 50 shows an expanding sector. The United States is a service-based economy, so the services sector tends to have more weight for the US dollar. However, this week, the focus will be on the manufacturing data because it is forecast to come out below the 50 level. Any positive surprises should see the US dollar bouncing higher.
ADP Employment Change
July’s ADP Employment Change or private payroll numbers will be released on Wednesday. Market participants look at these private payroll numbers in anticipation of Friday’s Non-Farm Payroll report due two days later. This week it is expected that 195k new jobs were added in July bythe US economy . Details matter because often times there can be similarities between both reports‘ numbers..
Non-Farm Payrolls
Next Friday marks as important day for economic data as it is first Friday of a new month; thus bringing us closer to July’s Non-Farm Payroll report release date.. It is expected that 200k new jobs were added bythe US economyin July with unemployment rate staying at 3.6%.
Conclusion
With three key economic events taking place this week; any increase in volatility from them should reflect positively on cryptocurrencies‘ volatility as well allowing for increased activity within markets throughout next few days!
