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Uk Cpi

Discussion in 'Economic Indicator Descriptions' started by Felix Homogratus, Nov 13, 2009.

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  1. Felix Homogratus

    Felix Homogratus Commander in Chief

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    UK CPI comes one once per month.

    CPI stands for Consumer Price Index. CPI is a primary measure of inflation in the UK. It measures prices of goods and services and compares it to prices for previous period of time, whether it's month or year. If the number is positive, it means that on average, prices for goods and services for this period, increased versus previous period, and vice versa.

    When making decisions to raise or cut interest rates, UK cares about CPI a lot, because if the CPI is too high, UK will tend to raise interest rates. If it's too low, it will tend to cut interest rates, so when CPI comes out higher than expected, traders tend to buy GBP/USD, and it tends to go up. When CPI comes out lower than expected, traders tend to sell GBP/USD, and it tends to go down.

    They usually release regular CPI and core CPI. Regular CPI includes everything, and core CPI excludes volatile items such as gasoline. Core CPI is what traders tend to care about the most.

    To see a history of this economic indicator and charts of how it affected GBP/USD and other currencies, please click here:
    Forex News Trading | Details and History for GBP Core CPI y/y

    If you want me to email you 1 day before this report is released, and explain to you in details on how to trade it, then please sign up for my free trading signals by going to this link:
    Forex Daily Trading Signals - Forex Peace Army Forum

    In the signal, I tell you exactly how many pips the currency will most likely move, depending on the difference between expected and actual numbers.
     
    #1 Felix Homogratus, Nov 13, 2009
    Lasted edited by : Sep 8, 2016
    jymarc44 likes this.
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