Investors await PPI data, central bankers’ speeches in focus

On Tuesday, popular cryptocurrencies scaled all-time highs. Treasury yields fall as the US dollar shrugs off a cautious market mood amid resurfacing Chinese property sector woes. The German ZEW survey, PPI data, and central bankers’ speeches take centre stage.

Stresses in China’s real estate sector could strain the Chinese financial system, with possible spill overs to the United States,” the Federal Reserve said in its financial stability report on Monday.

Even after Friday’s strong payrolls report, the dollar fell as the Federal Reserve said it would be “patient” in deciding when to raise rates.

Fed funds futures predict that rates will likely lift-off in September or October next year instead of around July, which caused the dollar to drift lower.

Bitcoin at all-time highs

The amount of institutional money invested in cryptocurrencies this year has surpassed 2020, according to CoinShares’ latest report. Over the past 12 consecutive weeks, crypto asset managers have received $8.9 billion in inflows. The market cap of Bitcoin has reached $1.28 trillion, which is very close to the all-time high setback on October 20. The market cap of Ethereum is approaching about one-sixth of the total crypto market cap at about $560 billion.

As the prices and trading volume for many crypto projects have been generating double-digit gains over the past few weeks, it seems that the cryptocurrency market has been steadily growing. CoinGecko estimates that the global cryptocurrency market is currently trading about $3 trillion.

From a technical analysis perspective, Bitcoin has plenty of room to rise since bulls have built strength during the past three weeks’ consolidation.

In a continuation of its upward trend, bitcoin broke through the key resistance level of $67,008 at the previous swing top to set a fresh high and set the stage for higher gains.

The first price target is estimated at $69500, and buyers are expected to consider $71180, $73000, and $76400 if the momentum persists.

Bitcoin’s outlook remains bullish until a decisive breakout below the support level at 57600 occurs.

Events of the day

In Europe, the key data release will be Germany’s ZEW survey of economic sentiment for November. This survey will indicate the health of the region’s economic driver.

US producer and consumer price indexes will also be of interest to investors on Tuesday and Wednesday, respectively. The monthly PPI is expected to increase by 0.6% in October, up a remarkable 8.7% yearly.

American Petroleum Institute data on crude oil supply will be released on Tuesday, and US Energy Information Administration data will be released on Wednesday.

On top of the data releases, several central bankers are scheduled to speak, including European Central Bank President Christine Lagarde, Federal Reserve Chairman Jerome Powell, and Bank of England (BOE) Governor Andrew Bailey.