What is the PCE Core Deflator and What Forex Traders Need to Know
The U.S. PCE Core Deflator (Personal Consumption Expenditures Price Index) is an indicator that measures price changes related to consumer expenditures. This index is widely used by the U.S. Federal Reserve and serves as a key benchmark for setting price stability goals. The PCE Core Deflator excludes prices for food and energy from the overall […]
What do FX traders need to know about the relationship between U.S. Treasury yields and the U.S. dollar price?
The relationship between US Treasury yields and the US dollar price is a crucial component for understanding currency markets and conducting FX trading. Here’s an outline of the main correlations: Interest Rates and Currency Value: Generally, the currency of a country with higher interest rates tends to be more valuable because investors will buy that […]
What do you need to know about the Philadelphia Fed Index?
The Philadelphia Fed Index, also known as the Philadelphia Fed Manufacturing Business Outlook Survey, is a monthly economic indicator that signifies the health of the manufacturing sector in the Eastern region of the United States. A high index suggests vigorous manufacturing activity in that region, and a low index suggests the opposite. It’s generally considered […]
What is the knowledge of the U.S. debt ceiling issue and what should FX traders be aware of?
The U.S. debt ceiling issue refers to a limit set on the amount of money that the U.S. government can borrow by issuing bonds. This limit is established by Congress. If the limit is reached, the U.S. government cannot issue new debt, which may result in a shortage of funds for government operations. This is […]
What should FX traders consider about the Consumer Price Index?
The Consumer Price Index (CPI) is a significant economic indicator that foreign exchange (FX) traders pay close attention to for a variety of reasons. Here are some points that FX traders should consider regarding the CPI: Inflation Indicator: CPI is a widely used measure of inflation. As such, if the CPI is rising, it indicates […]
Why Forex traders need to keep watching Gold price?
Gold prices often have correlations with several financial instruments, which can provide valuable insights for FX traders. Here are some key financial instruments that have a relationship with gold prices: US Dollar (USD): Gold is often negatively correlated with the US dollar. When the US dollar strengthens, gold prices tend to weaken and vice versa. […]
what is the credit criteria in bank lending survey from the European Central Bank (ECB)?
The credit criteria in the bank lending survey from the European Central Bank (ECB) are an important indicator for forex traders, as they provide insights into the lending environment within the Eurozone. The survey assesses the lending standards applied by banks, which include the requirements and conditions that borrowers must meet to qualify for a […]
What is ECB?
The ECB, or European Central Bank, is the central bank for the euro and administers the monetary policy of the 19 European Union (EU) countries that have adopted the euro as their official currency. These countries are collectively known as the Eurozone. Established in 1998, the ECB is headquartered in Frankfurt, Germany, and is one […]
What is FOMC?
The FOMC, or Federal Open Market Committee, is a branch of the United States Federal Reserve System that is responsible for overseeing the nation’s open market operations. This committee plays a crucial role in setting monetary policy for the U.S. economy, which has a significant impact on various aspects of the economy, such as interest […]
What is the connection between USD value and US inflation?
The value of the US Dollar (USD) and US inflation are closely connected, as they both relate to the overall health of the US economy. Inflation is the rate at which the general price level of goods and services in an economy is increasing over time, which subsequently leads to a decrease in the purchasing […]