The December Economic Calendar: Economic events that matter

December is usually a quiet time for markets as the world goes into holiday mode and even serious traders take time off from their graphs and graft. But interest rates and other market-moving events march on regardless. Here are the ones to keep an eye on in December. 

? November recap

November was marked by rallies, ETF rumours and a Bitcoin yearly high. As the month began, the price of Bitcoin was holding onto gains made in October and trading steady at $34,000. XRP was also showing signs of life, with a 3% increase, while Solana marked an impressive 9% uptick.

Fed leaves rates unchanged

Chair of the Federal Reserve Bank Jerome Powell announced the decision to pause interest rates on 1 November. Subsequently, Bitcoin and stock markets saw another uptick, with the crypto market leader surpassing $35,000 for the first time this year. 

10 November saw a yearly high for Bitcoin at $37,942, accompanied by Ethereum surging 9% to surpass $2,000. Analysts attributed this rally to news of BlackRock’s Ethereum spot ETF plans. This was followed by what later turned out to be a false BlackRock XRP ETF rumour, causing XRP to surge by over 15%, only to retrace to its initial position after BlackRock denied the rumour.

Inflation numbers flat

US inflation rate numbers came in flat while the US Consumer Price Index (CPI) recorded its lowest level in two years, indicating “slow but clear progress” in the battle against inflation, as the Chicago Fed President, Austan Goolsbee, commented to CNBC. 

FOMC minutes reveal little

The minutes from the Federal Open Market Committee’s interest rate meeting at the beginning of the month was released on 22 November, with no mention of rate cuts in the new year, as many investors were expecting. 

The remainder of the month was characterised by dips and spikes as Bitcoin and Ethereum solidified their key levels of $37,000 and $2,000, respectively. These levels were tested multiple times throughout the month.

What’s on in December? 

What? US ISM Services Purchasing Managers’ Index (PMI)

? When? Friday, 1 December

Relevance? The US ISM Services PMI measures the health of the American services sector, which includes industries like healthcare, retail, and hospitality. Investors pay close attention to these numbers because the services sector makes up a significant portion of the US economy.

What? US unemployment rate and non-farm payrolls

?  When? Friday, 8 December

Relevance? US unemployment numbers serve as a critical indicator of the overall health of the US economy. 

What? US inflation rate numbers 

?  When? Tuesday, 12 December

Relevance? The inflation rate in the US will decide the Fed’s plans with interest rates. High inflation may call for further rate hikes, while signs of inflation slowing may lead to a pause or even a decrease in interest rates. 

What: Federal Reserve Bank interest rate decision

? When: Wednesday, 13 December 

Relevance: Financial markets often react sensitively to interest rate decisions. Lower interest rates can stimulate economic activity and boost stock markets, while higher rates can have the opposite effect. 

*This information should not be construed as a solicitation to trade. All opinions, news, research, analysis, prices or other information is provided as general market commentary for information purposes only and is not investment advice or recommendation. Luno always advises you to obtain your own independent financial advice before investing or trading in cryptocurrency.