🔔 US CPI and How to Trade in It?🔔

CPI stands for Consumer Price Index. This ratio reflects inflation, and inflation touches everyone. If inflation rises, the US Fed will be ready to hike the key rate and leave it higher for longer.

📈If the rate is high, it will make loans more expensive. Companies start producing less, and people start consuming less. The economy starts stagnating. This is called a recession.

👀To count CPI, the Bureau of Labor Statistics (BLS) checks out stores and conducts telephone interviews with about 26000 retail outlets and other businesses. Prices are collected on 80000 items.

Education

⭐️ Before CPI numbers are published, you may see a preliminary forecast in the economic calendar. For example, tomorrow is the release of CPI for December.

✅CPI MoM is expected to be at 0.1%; ✅CPI YoY at 2.6%; ✅Core CPI MoM at 0.3%.

🥇If the fact is higher than these numbers – the US dollar may start rising, and XAUUSD may start falling. Otherwise, the US dollar may fall, and gold prices will increase.