US Economic Data: Retail Sales, Philly Fed & Jobless Claims
US economic data showed stronger-than-expected June retail sales (+0.6% vs +0.1% expected) and a 0.5% rise ex-autos. The Philadelphia Fed survey’s CAPEX, employment and new orders indices surged, with prices paid climbing to 58.8. Initial jobless claims unexpectedly fell while continuing claims reversed their recent uptick. Investors also eyed Netflix earnings projected at $7.07 per share and discussed Federal Reserve independence. Traders note that resilient US economic data could prompt tighter Fed policy, reducing liquidity and weighing on risk assets such as crypto.
Bearish
Resilient US economic data typically signals potential Fed rate hikes or reduced asset purchases, which can drain liquidity from risk markets. Strong retail sales, rising Philly Fed indices and falling jobless claims suggest a robust economy, reducing demand for high-yield assets like crypto in the near term. Combined with anticipation of tighter monetary policy, this could prompt traders to shift out of volatile tokens, leading to short-term bearish pressure. Over the long term, policy clarity may stabilize markets but the immediate outlook remains cautious.