This week the US dollar is set to experience some activity, and cryptocurrency investors may want to pay attention. After all, Bitcoin’s consolidation around $30k in the past few weeks has resulted in little market movement. Consequently, should the US dollar’s volatility rise in the upcoming week, Bitcoin’s volatility could follow suit.
To that end, here are three factors that could impact the US dollar next week:
1. ISM Manufacturing Services PMI: This metric is calculated monthly and is measured against the benchmark of 50. A reading higher than 50 indicates expansion in the sector. Given that the US is largely service-based economy, the US dollar tends to echo the services sector. This week, the focus will be on the manufacturing data, with a forecast of a reading below 50. Any positive surprises could result in a US dollar bounce.
2. ADP Employment Change: Private payroll numbers are released on Wednesday, and are monitored by market participants in preparation for the important Non-Farm Payrolls report. July’s ADP numbers are expected to show an addition of 195k jobs.
3. Non-Farm Payrolls: The NFP report is due next Friday, and the market predicts an addition of 200k jobs to the US economy in July. The unemployment rate is expected to remain stable at 3.6%.
As the US economy data is released this week, investors should keep an eye out for any changes in the US dollar’s volatility, as it could affect the entire cryptocurrency market.
