for the Japanese goods and thus for the JPY. The fomc statement is also likely to focus on the Feds balance sheet normalization. There are two kinds of inflation. A rise in the interest rate in a geographically stable and economically strong country will naturally attract more investments. The reason for this is that reducing inflation in an economy makes companies appear to be earning less in real terms and they are therefore unlikely to increase their workforce. Consequently, the JPY will most likely depreciate against the USD.
Despite what theory postulates, the market does not always react this way. That is the reason for the Central Banks to loath low inflation or deflation (negative inflation) scenario.
Some of the goods incorporated in the CPI Index also highly susceptible to volatile changes in value, such as energy and agricultural foodstuffs, and these are excluded in the US from the Core CPI rate which acts to reduce the impact of price shocks. His comments sent the Australian dollar lower on the day. Interpretation of several of these important economic data is simple and straight forward. A wannabe professional trader should compulsorily have a good knowledge about the relationship between the energy prices, inflation, and currency rates. There would be hyper inflation (inflation rising without control) leading to large scale unemployment and devaluation of the currency. The consumer price index is an important measure for both governments and traders in its effect on currency values.
How to Use, inflation, parameter in Trading, forex Energy Prices, Inflation, and
Ig spreads forex
Impression forex sur mesure
Paires de forex les moins volatiles