Last week’s weak PMI reports showed manufacturing activity contracting for a third month in a row and services activity shrinking for the first time in 11 months.

Additionally, crypto markets have settled a little following the volatility in the wake of the spat between US President Donald Trump and tech billionaire Elon Musk late last week.

However, some of that may return this week when key inflation and consumer sentiment reports are released.

On top of this, the next round of US-China trade talks is scheduled to begin on Monday, commented the Kobeissi Letter.

Economic Events June 9 to 13

The most impactful report of the week is May’s Consumer Price Index CPI which is one of the two key measures of inflation. Central bank policymakers and investors closely monitor the CPI report as it reflects price trends across the economy and shapes sentiment.

The May CPI  report is likely to confirm that price pressures remain elevated, according to analysts.

May’s Producer Price Index (PPI) report will follow the CPI on Thursday, reflecting input costs for producers and manufacturers. PPI measures the cost of producing consumer goods, which ultimately impacts retail prices, and is viewed as a leading indicator of inflationary pressures.

June’s Michigan Consumer Sentiment Index and Consumer Inflation Expectations preliminary readings are due on Friday. These reports summarize consumer confidence and long-term inflation expectations, which can impact spending and overall economic growth.

Key Events This Week:

1. Atlanta Fed GDPNow data Monday

2. May CPI Inflation data Wednesday

3. 10-Year Note Auction -Wednesday

4. May PPI Inflation data Thursday

5. Michigan Inflation Expectations data Friday

6. Michigan Consumer Sentiment data Friday

This marks…

This marks the last week of inflation data before the June Fed meeting. According to the CME Fed Watch tool, there is a 99.9% probability that interest rates will remain unchanged at the June 18 central bank meeting.

Crypto Market Outlook

Crypto markets have dipped a little over the past 24 hours, with a 2% decline in total capitalization, which dropped to $3.41 trillion during Monday morning trading in Asia.

Overall, markets remain range-bound bound having recovered from their Friday fall and holding steady over the weekend.

Bitcoin topped $106,000 during late trading on Sunday but declined a little to $105,600 on Monday, June 9. Aside from Friday’s dip, it has remained within this tight trading channel since the end of May.

Ethereum is holding steady around the $2,500 price zone, failing to break resistance above $2,700 but also not slumping back towards $2,000.

Most of the altcoins are generally flat with minor gains for XRP and ICP, and further losses for memecoins.