Quoting BurgerKingDislikedEh???
Lowered CPI = weak economy = therefore STRONG MONEY?
You must be the first one to have said that.
We are talking about UK's CPI not US CPI in that last dataIgnored
Why is Tokyo CPI higher impact than Japanese National CPI? 2 replies
USD/GBP and today's CPI number 2 replies
CPI News 6 replies
PPI & CPI this week... What are you expecting? 12 replies
CPI and Core CPI 20 replies
Quoting abobtraderDislikedhey, if I knew the answer to that ... I'd be writing this from my yacht!
...also, I'd be careful using a GBP inflation number to call sentiment on the USD. That could be a risky game. Focussing on the pound, this week has the potential to be critical. Tomorrow we have the BoE minutes and the labour mkt report (keep an eye on core wage growth), then on Thursday we have retail sales, and then the first cut of the GDP number on Friday.Ignored
Quoting c1roDislikedNo, I dont think so. IF the CPI of a country is weak than it's previous it means the currency will going up and for the PPI is the other handIgnored
Quoting waf_1988DislikedI agree with u, if the CPI is weak than it's previous, the currency will go up.Ignored
Quoting c1roDislikedIt remains the same for any currencies. U can look over another member statementIgnored
Quoting BurgerKingDislikedUK CPI is in radar again.
Previous: 0.1%
Estimate is 0.3%
According to c1ro & waf_1988, IF the actual CPI comes out lower than 0.1%, GBP will go up, therefore BUY GBPUSD
US CPI is in radar as well.
Previous: 0.2%
Estimate: 0.2%
And according to c1ro & waf_1988 again, IF actual CPI comes out lower than 0.2% go BUY USD (ie, SHORT GBPUSD, SHORT EURUSD, LONG USDJPY).
After a month of thinking, I still could not understand the above quotes. Can anyone hit me in the head? Am I the only one who dont understand how CPI/PPI numbers affect a currency?Ignored
<fieldset class="smallfont" style="padding: 4px 10px 2px; width: 70%; margin-bottom: 9px;"> <legend>Definition</legend>
The Consumer Price Index (CPI) measures the rate of inflation experienced by consumers. A rising trend has a positive effect on the nation's currency. The primary objective of the central bank is to achieve price stability; when inflation rises above an annualized rate of approximately 2%, they will respond by raising interest rates to bring prices down. Higher interest rates attract foreign investment, thus increasing demand for the nation's currency. CPI is one of the most closely watched indicators and will usually have a high impact upon release.
</fieldset>Quoting bapxyzDislikedNow would that hold true for a currency like the Loonie that seems to increase with the price of oil. That it's really not the oil but the chance that Canada might raise interest rates?Ignored
Quoting BurgerKingDislikedWhat bewildered me was WHY, after a month, no one commented on how Inflation's relation with forex.Ignored
Quoting merlinDislikedhigh oil prices = stronger economy = higher inflation = greater chance of higher ratesIgnored
Quoting bapxyzDislikedThanks Merlin
I see very clear. Now would that hold true for a currency like the Loonie that seems to increase with the price of oil. That it's really not the oil but the chance that Canada might raise interest rates?Ignored