Another volatile week is in store with two big inflation reports due alongside retail sales data.

Last week’s mixed recent economic reports still reflect a robust economy and elevated inflation, supporting the case for the Federal Reserve to remain on hold with rate cuts for now.

“Meanwhile, ongoing trade war headlines will carry over from last weeks volatility,” commented the Kobeissi Letter.

Crypto markets have remained flat over the weekend but resumed their retreat during early trading in Asia on Monday.

Economic Events Feb. 10 to 14

President Donald Trump will make another tariff announcement on Monday, stating that the US will impose 25% tariffs on all steel and aluminum imports, including from Canada and Mexico.

He also reaffirmed that he would announce “reciprocal tariffs,” probably on Tuesday or Wednesday, with the US imposing import duties on products where another country has levied duties on US goods.

January’s Core CPI (Consumer Price Index) report will be released on Wednesday. This is one of the two key indicators used to measure inflation as it reflects price trends in the economy, shapes consumer spending, and directly affects the Fed’s policy rate decisions.

This is followed by January’s PPI (Producer Price Index) report on Thursday, which reflects input prices for producers and manufacturers. PPI measures the costs of producing consumer goods, which directly affects retail pricing and is also viewed as a signal of inflationary pressures.

January’s Retail Sales report will be released on Friday, providing data on consumer spending. The report is a leading indicator of the economy’s health as well as inflationary factors on the demand side.

Key Events This Week:

1. Trumps Reciprocal Tariff Announcement Monday

2. Fed Chair Powell Speaks Tuesday/Wednesday

3. January CPI Inflation data Wednesday

4. January PPI Inflation data Thursday

5. January Retail Sales data Friday

6. ~20% of SP 500 companies…

Additionally, Fed Chair Jerome Powell will deliver his semi-annual monetary policy testimony to Congress, appearing before the House Financial Services Committee on Wednesday and the Senate Banking Committee on Thursday, which could add volatility.

America’s largest crypto exchange, Coinbase, is due to report earnings on Thursday.

Crypto Markets Retreat

Crypto market cap has fallen more than 3% on the day to $3.23 trillion at the time of writing as digital assets start the week in the red.

Bitcoin fell below $95,000 in an intraday low late on Sunday but managed to rebound to $97,000 during the Monday morning session in Asia.

Ethereum fell a further 2.4% on the day, dropping to $2,575 before recovering to over $2,630. The asset has lost around 20% over the past fortnight despite several bullish developments.

Altcoins were bleeding out again, with larger losses for XRP, Dogecoin, Cardano, Stellar, Shiba Inu, and Sui.