event, that will deploy a space with more information: Definition of the event (what it is, who releases it, what it means for currencies). Unlike many other indicators out there CPI does NOT repaint. Given the impact of an interest rate on the strength or weakness of a currency, traders can anticipate the impact of the central banks actions and the impact on the dollars performance in currency pairs. The Bottom Line, the Consumer Price Index (CPI) is a critical indicator of pricing pressures in an economy and provides a gauge of inflation. Trading Systems, trading Discussion, platform Tech, broker Discussion. Better or worse than expected? Or all patterns from all three groups at the same time! By increasing interest rates, a consumer may be more likely inclined to save money, rather than spend it, due to the return they may generate by keeping it in a bank.
In China, for example, due to the economic boom in recent years, people are making more money than before. Consensus number: that is a general agreement of experts on the outcome of the number. Such a cycle of increase in wage coin market cap super bitcoin and purchasing ability is bound to send inflation through the roof. Forex traders monitor the CPI, as it can lead to changes in monetary policy by the central bank that will either strengthen or weaken the currency against rivals in the markets. The CPI can also sometimes be affected by a hike in price of a particular commodity.