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 […]
What is the sentiment for forex?
Sentiment in forex refers to the overall emotional and psychological state of market participants, which can influence price movements in the currency markets. Understanding market sentiment can help traders develop effective trading strategies and capitalize on market trends. Here’s why sentiment is important for forex trading: Impact on price formation: Market participants’ emotions and […]