Inflation and Forex

The rate of inflation is the rise in overall prices and is strongly correlated to rising interest rates. Higher interest rates tend to support a local currency. Forex traders generally use 7 economic indicators to measure inflation. They are:

• Producer Price Index (PPI)
• Consumer price Index (CPI)
• GNP Deflator
• GDP Deflator
• Employment Cost Index (ECI)
• Commodity Research Bureau’s Index (CRB Index)
• Journal of Commerce Industrial Price Index (JoC)

Each of these will be covered in more detail in upcoming Forex Digest blogs.

For more information about forex trading for novice to advanced forex traders, check out Forex Trading Essentials, a website containing forex tools, forex broker info, currency charts, trading systems.

For weekly economic indicators for other country's currencies, consult this Forex Calendar.

Technorati tags : forex, forex trading, currency, currency trader, currency pairs, inflation, learn forex, make money, forex trading essentials, global currency exchange, trade currencies, forex broker, economic indicators, forex trading systems