How Does the PPI Work in Forex Trading?

 

PPI IN FOREX TRADING: TALKING POINTS

  • The Producer Price Index, or PPI, is a significant piece of economic information.
  • Each month’s second week sees the publication of PPI statistics.
  • To predict consumer inflation as measured by the Consumer Price Index, forex traders might utilise PPI as a leading indicator (CPI).

Due to its signalling impact on anticipated future inflation, PPI is a significant piece of economic data. Due to the strong correlation between inflation and interest rates, traders in the forex market keep an eye on PPI index. However, their primary worry is the potential impact of changing interest rates on currency pairings. Learn more about the PPI index and its impact on the foreign currency market by reading on.

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