Take this, number today comes out in less than half an hour.
Description from forexfactory.com:
"Import Prices m/mMeasures Change in the price of imported goods and services purchased domestically;
Usual Effect Actual > Forecast = Good for currency;
FF Notes This is the earliest government-released inflation data"
My question: Why is higher inflation in the US good for the USD? If the "federal" reserve prints dollars that debases the USD and causes inflation. So inflation is caused in part by a depreciating USD. Why would higher inflation cause the USD to appreciate?
Description from forexfactory.com:
"Import Prices m/mMeasures Change in the price of imported goods and services purchased domestically;
Usual Effect Actual > Forecast = Good for currency;
FF Notes This is the earliest government-released inflation data"
My question: Why is higher inflation in the US good for the USD? If the "federal" reserve prints dollars that debases the USD and causes inflation. So inflation is caused in part by a depreciating USD. Why would higher inflation cause the USD to appreciate?