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There was a certain time, I think Ginx, who tends to be one of our traders said He trades with CPI or something and it went to his direction.

Today we’d be talking about CPI

So what is CPI?

Ohh I see

CPI means consumer price index

Ok then

Interesting

And this is also the primary gauge for inflation,

Now what I’d inflation and how does it correlate with this side of FX

Now inflation is the rate at which the general price level of goods and services in an economy rises overtime which reduces the purchasing power of money

A detailed explanation from my research

CPI most commonly means Consumer Price Index.

It measures how the prices of everyday goods and services—such as food, housing, transportation, and healthcare—change over time.

CPI is commonly used to measure inflation:

CPI rises → prices are generally increasing → inflation.

CPI falls → prices are generally decreasing → deflation.

For example, if CPI increases by 3% over a year, it roughly means that a typical basket of goods and services costs 3% more than it did a year earlier.

Now, in Forex currencies represent the health and value of entire nations , inflation affects the health and wealth of countries, now back to the main topic

Why is CPI relevant?

Very very good!!!!

I love that you are following

I think I’d answer that

CPI is relevant because it measures the cost of living which also means real world impact, it basically tracks how much our everyday items cost overtime

It dictates central bank interest rates

It also drives the stock and forex market

In simple terms: CPI tells traders

CPI (Consumer Price Index)

It is an important economic news report that shows whether the prices of goods and services are rising or falling.

Example: If CPI comes out higher than expected, it may indicate higher inflation, which can cause strong movements in currencies such as the USD.

And this is because the the a CPI forces central banks to change interest rates

In trading, a candlestick shows what happened to the price during a specific period—for example, 1 minute, 5 minutes, 1 hour, or 1 day.

CPI tells traders how expensive everyday things are becoming and helps them understand inflation.