UNDERSTANDING THE IMPACT OF THE US CPI DATA
ON THE FX MARKET
December 19/2021
When the market is booming it's crucial to understand the factors behind the surge that's taking place in the currency market. On the other hand understanding, the importance of the CPI is indeed a crucial step for having a profitable trading experience.
How often have you heard about the CPI and core CPI? It tends to be a regular occurrence in the foreign exchange world yet many market speculators aren't able to distinguish the essential usage of the CPI data.
However, in a layman's terms, the CPI can be described as The Consumer Price Index which is released by the US Bureau of Labor Statistics. It's a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services.
While we may be laying some emphasis on the importance of the CPI we should also don't forget how it affects interest and Federal Reserve monetary policy decisions. In essence, both the CPI and feds fund rates are working hand in hand, in which the alteration in one can be felt in the other.
In general, the effect of the CPI data tends to result in the hastening of the federal reserve to raise the rate, as a strong CPI would mean a credible measure of inflation. Because the result of high CPI data is caused as a result of high cost in the purchase of goods from the consumers.
At the moment, a strong inflation presence is been felt in the US and the federal reserve is on the verge of raising rates soon, which in turn will aid to corb the presence of high inflation to reduce to it minimal.
To prevent yourself from suspicious brokers I choose WikiFx to research brokers:
ON THE FX MARKET
December 19/2021
When the market is booming it's crucial to understand the factors behind the surge that's taking place in the currency market. On the other hand understanding, the importance of the CPI is indeed a crucial step for having a profitable trading experience.
How often have you heard about the CPI and core CPI? It tends to be a regular occurrence in the foreign exchange world yet many market speculators aren't able to distinguish the essential usage of the CPI data.
However, in a layman's terms, the CPI can be described as The Consumer Price Index which is released by the US Bureau of Labor Statistics. It's a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services.
While we may be laying some emphasis on the importance of the CPI we should also don't forget how it affects interest and Federal Reserve monetary policy decisions. In essence, both the CPI and feds fund rates are working hand in hand, in which the alteration in one can be felt in the other.
In general, the effect of the CPI data tends to result in the hastening of the federal reserve to raise the rate, as a strong CPI would mean a credible measure of inflation. Because the result of high CPI data is caused as a result of high cost in the purchase of goods from the consumers.
At the moment, a strong inflation presence is been felt in the US and the federal reserve is on the verge of raising rates soon, which in turn will aid to corb the presence of high inflation to reduce to it minimal.
To prevent yourself from suspicious brokers I choose WikiFx to research brokers: