I am very new to Forex and I would like to understand how some economic indicators influence the market to go up or down.
Hopefully you could give me some pointers on these indicators… Here’s what I feel about them and I know I could be wrong.
[B]Consumer Price Index[/B]
Signs of inflation means the central bank has to raise interest rates.
If CPI goes down = Good??
If CPI goes up = :mad: Bad??
Question: Does more inflation and increased interest rates = bad for economy?
Same goes for [B]Producer Price Index[/B].
[B]Personal Income and Spending[/B]
Question: What does an increasing and decreasing personal income and spending mean for an economy?