Consumer Price Index (CPI) is the most watched economic indicator. It is calculated then released by the Bureau of Labor Statistics, which is part of the Department of Labor.
What Does Consumer Price Index measure?
It measures the change in price of goods and services purchased by the consumers excluding investment items such as stocks, bonds, real estates and life insurances. In short, Consumer Price Index measures the cost of living.
Why Do We (traders) Care?
Consumer Price Index accounts for the majority of overall inflation. Inflation is important to currency evaluation. If the stats are good, they are considered as good for the U.S Dollar which is likely to strengthen as a result and weakens when the stats are less than expected, it is not as straight forward as it sounds though. U.S CPI also impacts the U.S stocks.
Check out my fundamental analysis course should you wish to learn how to trade CPI and how it affects stocks. Thank you for stopping by. Below are the U.SConsumer Price Index dates 2024.
Hello Subscriber, If you are not a subscriber, please subscribe to receive notifications on weekly economic news and other publications. This week we have 11 major economic releases with the Reserve Bank of Australia (RBA) deciding on its Interest Rates, issuing the Monetary Policy Statement, and holding a press conference.
Always understand that the markets do not move randomly, they are affected by such economic news. Incorporating fundamentals into your day trading helps you plan your trading week, spend less time studying charts day and night, and be able to trade while having your 9-5 job, school, or a business. I have published an episode on my podcast titled “Why you shouldn’t ignore fundamentals” You can listen HERE.
If you live in South Africa, you are aware that we are facing a big challenge with our electricity and have daily load-shedding. During load-shedding, the network gets affected and we sometimes experience a very slow internet connection.
When you have incorporated fundamentals, you can also plan around it and ensure that you don’t schedule any trading sessions during that time. This is to avoid a situation where you find yourself stuck in trades. If you have been trading but only relying on technical analysis and wish to start incorporating fundamentals and to learn how the markets work, WhatsApp +27 78 144 6851 to enroll for my fundamental analysis course, mentorship, and coaching.
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