CPI vs price on GPBUSD
Hi there,
Today, 12 Aug 08, at 10 30 GMT Consumer Price Index was released. Having in view that the 4.4% value was grater the expected (around only 4%), I was convinced that the pound will shoot up despite de bearish trend. The reason I thought so is because "consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates ". So, high CPI = High inflation = high intrest rate...
What I don`t understand is WHY the next second after de news, I have a big 80 pip bearish candle on my screen... WHAT HAPPENED ?
Necre
|