Calculations to CPI changed from a calculation on its own to see true CPI to the Democrat party desire for chained CPI. If CPI is chained then its as if the calculation is from an index based on the previous CPI release rather than a true CPI reading from the normal base period. Chained CPI holds the release month to month to extremely small moves.
CPI last at 1.4 in December rose from 1.3 or 0.10. Then 1.8 to 1.7. Since the middle 2020’s, CPI hasn’t moved quarter to quarter yet bread, milk, eggs and basic staples seems to rise every month.
The Fed had no choice to inform in 2020, it changed its CPI view to average Inflation within a range to understand CPI now means 2% may run hot or cold, above or below 2%. Central banks such as Canada lacked any choice except to follow. In reality, will we actually see 2.5% Inflation then Milk, bread and eggs rise further.
The central banks specifically the BOE in 2016 /2107 informed day trades contain 3 chances to profit and those 3 opportunities existed to Europe, UK and 8;30 am USD news events. The masters of volatility destroyers went further. CPI today in reality should offer a 100 pip move so says the BOE. Instead, CPI’s value today is ohh 20 pips The central banks stiffed traders severely.
If a trader is interested in economics then CPI holds value but if profits to CPI is more important then here’s how the trades run today against all known price information.
In today’s price series for currencies and all market price instruments, only 4 numbers contain any value and this within 7 hours of day trades. The remainder numbers are fluff but installed to watch day trades unfolod and to allow longs and shorts since not many pips trade.
The EUR/USD price series:
12.1812, 1.1818, 1.1827, 1.1836, 1.1842,
1.1879, 1.1887, 1.,1894, 1.1902, 1.1917, 1.1924 and 1.1932.
Only 4 valued numbers: 1.1818, 1.1836 Vs 1.1902 and 1.1936. Every other number is meaningless. Most traders today will offer an entry and target possibly within this price series but respectfully, those numbers are wrong for entries and targets. For the vast majority of 7 hours, prices remain neutral and untouchable within the price series.
Day trades are either a long waiting game to screen watchers for the correct price to trade or set entries and targets then enjoy the day. And pay no attention to CPI.