What is the Consumer Price Index in forex trading

05/24/2011 Editorial Team 0

The CPI measures inflation (a sustained rise in prices in an economy) as experienced by consumers in their day-to-day living expenses. The increase in the CPI is what most people think of as the “inflation rate.” It is used by retailers in predicting future price increases, by employers in calculating salaries and by the government in determining cost-of-living increases for Social Security.

How to use Economic Data in forex trading

04/08/2011 Editorial Team 1

Remember that economic indicators usually contain revisions to previous data sets. So although the importance of figures lies in the extent to which they fall outside market expectations, be aware that an unexpected rise could be the result of a downward revision to the previous month. So look at revisions to older data before you use this as a basis for making a trade.