CPI stands for Consumer Price Index. It is the most watched economic indicator. It is calculated/released by the Bureau of Labor Statistics, which is part of the Department of Labor.
What does CPI 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 insurance. In short, CPI measures the cost of living. The CPI is released monthly.
Why do we (traders) care?
Consumer Price Index accounts for the majority of overall inflation. Inflation is important to currency evaluation. As promised in the beginning of the year that I will publish the most watched economic news annual dates. I’ve already published Non Farm Payrolls annual dates. To get started with your yearly plan, check this post here.
Below is the United States Consumer Price Index 2020 schedule. Thank you for stopping by and reading this post. Please share with your friends and stay tuned for more.
Non Farm Payrolls (NFP) is the most watched economic event in the markets. Non-Farm Payrolls is usually released on the first Friday of the month, 12 months a year and it is all about the number of jobs created during the previous month as compared to the current month. The stats exclude the farming industry hence it’s called the Non-Farm Payrolls.
Why Do Traders Care?
Job creation is an important indicator of consumer spending. It accounts for the majority of overall economic activity. When Non-Farm Payrolls stats are greater than expected, that is viewed as good for currency (USD) and an indication that the economy is doing well. When the stats are below expected, that is viewed as bad for currency(USD) and an indication that the economy is not doing so well.
Trading the news is not just straight forward whereby we buy when the results are above and sell when they are below. There are some other factors to consider. If you need to learn more about news trading, feel free to contact me. I have a course designed for someone who would like to learn.
Thank you for stopping by. As part of helping you with planning, I will publish the annual schedules of the most watched economic news, kindly subscribe so that you may not miss any of those publications. In case you missed my first blog post of 2020 about how to plan for your trading year, you can read it here. Below is the Non-Farm Payrolls annual schedule. Kindly share this post with your peers and subscribe . Cheers, till next time…
Central banks are in focus this week. Federal Reserve bank (FED) is expected to cut their interest rates by 25 basis points on Wednesday. The rate decision will be followed by FOMCmonetary policy statement and a press conference which focus more on the future. To learn more about the importance of Interest rates in the markets and why do we (traders) care, read this post HERE. To learn how to trade the interest rates, monetary policy statement and press conferencescontact me for private coaching.
On Thursday, Bank of Japan (BOJ), Bank of England (BOE) and Swiss national bank (SNB) are also deciding on their rates . BOJ is expected to hold theirs at the current rate of -0.10% and SNB is also expected to hold at the current rate of -0.75%. Bank of England is also holding at the current rate of 0.75%.
To subscribe, enter your email on the side and click “subscribe”. You’ll receive an email with a confirmation link (email could be on spam). Click on the link to confirm your subscription and you’ll receive new blog posts direct to your email whenever there’s a new publication. Below is the weekly economic news. Thank you for stopping by and happy trading.
Recent Comments