Economic Indicators in Forex: Consumer Confidence Index and Consumer Price Index
Fundamental analysis is described numerically by economic indicators. Not only the numerical number of the indicator is important but also the market’s anticipation and prediction of the forecast, and the impact of the relation between anticipated and actual figures on the market. The traders around the world follow these indicators such as:
CCI - Consumer Confidence Index
- Release date: last Tuesday of each month
- Release time: 10:00 am EST
- Coverage: current month
- Release by: The Conference Board
This index is defined as the degree of optimism on the state of the economy that consumers are expressing through their activities of savings and spending. It is issued monthly by The Conference Board, an independent economic research organization, and is based on 5,000 households. Such measurement is indicative of consumption component level of the gross domestic product. The Federal Reserve looks at the CCI when determining interest rate changes, and it also affects stock market prices
CPI – Consumer Price Index
- Release date: 20th of each month
- Release time: 8:30 am EST
- Coverage: previous month
- Release by: Bureau of Labor and Statistics
The CPI is an index number measuring the average price of consumer goods and services purchased by households. It is one of several price indices calculated by national statistical agencies. The percent change in the CPI is a measure of inflation. The CPI can be used to index (i.e., adjust for the effects of inflation) wages, salaries,pensions, or regulated or contracted prices. The CPI is, along with the population census and the National Income and Product Accounts, one of the most closely watched national economic statistic.
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