How Inflation Data (CPI & PCE) Shapes Forex Trading Opportunitie
How Inflation Data (CPI & PCE) Shapes Forex Trading Opportunities How Inflation Data (CPI & PCE) Shapes Forex Trading Opportunities Introduction: Inflation has always been one of the most powerful drivers of financial markets. In forex, inflation data such as the Consumer Price Index (CPI) and the Personal Consumption Expenditures (PCE) Price Index are more than just economic statistics—they are signals that influence central bank policies, shape interest rate decisions, and create volatility across currency pairs... What Are CPI and PCE? Consumer Price Index (CPI) CPI measures the average change over time in the prices paid by consumers for goods and services... Personal Consumption Expenditures (PCE) PCE is another measure of inflation, but it is broader. It tracks the prices of goods and services consumed by households... Why Inflation Data Matters to Forex Traders Higher inflation → Higher interest rates...