Markets Brace for Inflation Data and Central Bank Moves

Markets are entering a critical stretch packed with economic releases and central bank ￰0￱ Wednesday, China will publish its August CPI and PPI, which will give a clearer picture of inflation and deflation risks in the world’s second-largest ￰1￱ numbers could signal slowing demand and weigh on global growth sentiment, often spilling over into crypto ￰2￱ same day, the US will release its August PPI at 14:30 CEST, offering insights into upstream price pressures, followed later by the EIA crude oil inventories at 16:30 ￰3￱ balances play a key role in shaping inflation expectations and can move bond yields, indirectly affecting Bitcoin and other risk ￰4￱ brings the most important release of the week: the US CPI for August, due at 14:30 ￰5￱ see this as a decisive report ahead of the Fed’s September 17 ￰6￱ inflation data would strengthen bets on a Fed rate cut , which tends to boost risk assets, while stronger numbers could reinforce a “higher for longer” policy stance, putting pressure on ￰7￱ the same day, the European Central Bank will announce its interest rate decision, followed by a press conference in the ￰8￱ ECB’s guidance on eurozone liquidity and borrowing costs will influence euro and dollar flows—an important factor since a stronger US dollar often weighs on ￰9￱ US jobless claims, also at 14:30 CEST, will add another piece to the Fed puzzle by signaling the strength of the labor market.

Friday’s focus will shift to the UK and the ￰10￱ 08:00 CEST, the UK reports its July monthly GDP, offering a snapshot of economic momentum that could affect GBP and EUR trading. Later, at 16:00 CEST, the University of Michigan releases its preliminary consumer sentiment index for September, which also includes inflation ￰11￱ these are secondary indicators compared to US CPI and ECB policy , they still influence the broader risk appetite that drives capital flows into or out of crypto. Overall, the week’s outcomes will determine whether markets lean toward optimism on easier monetary policy or brace for a longer fight against ￰12￱ crypto, particularly Bitcoin, the US CPI and ECB decision stand out as the biggest catalysts, while China’s inflation data adds a global risk ￰13￱ market updates and sentiment surveys will provide further nuance to how investors position across risk assets.