Consumer Price Index (CPI) is an indicator of the cost of a basket of consumer goods and services required. CPI calculation is made on the basis of price changes for each of the basket’s components. At the same time it takes into account the importance of a certain product in the basket.
When you first hear about forex trading and make some trades in a demo account it seems like it would be easy to simply make a few trades and walk away with a profit. However, when most people try it they find out that it feels more difficult once they commit their hard earned money to a trade. When you are trading in a demo account taking risk seems to be easier. You have no emotional attachment to the money that is in your demo account because it is not real money.
It is known that in order to successfully trade on Forex market, in addition to the technical you also need to learn fundamental analysis. This article will be especially useful for those who just begin to research the specifics of the financial markets as we will show a simple picture of impact of the fundamental factors on currencies.
Volatility is a measure of the degree of change in the value of a currency, currency pair or the forex market as a whole. Volatility is most commonly referenced when a currency has sharp changes in value compared to many of the other currencies in the market. Low volatility means that there is little or no change in value over a specific period of time while high volatility means that values have varied significantly over a period of time.
US Retail Sales, along with data on employment and GDP, is one of the most important fundamental indicators that has a very large impact on the Forex market. US Retail sales index demonstrates the change in the volume of sales in the retail trade of the USA.