In Great Britain, the figure concerning the core consumer price index remained 1.9 percent in September, as compared to 2.1 percent during the month before, up beating the economist expectation which was 1.8 percent. The data is sourced from a news released by the National Statistics, United Kingdom.
The figure reflects an estimate of the price movements of different products including goods and services. The data is arrived after comparing the prices of samples selected from different representative shopping baskets. It is to be noted that, the figure doesn’t take account of volatile products to avoid biased calculation.
As a matter of fact, the core price index is considered as one of the important indicators to measure the inflation rate and change in purchasing pattern of consumers.
Talking about the impact on major currency pair such as GBPUSD post economic release, the Great Britain Pound (GBP) slid down against the US Dollar (USD) and observed a volatility of 190371 with 1.31925 being its peak and 1.30993 as the lowest point it touched the last day. The pair was opened at 1.31831 and closed around 1.31141.
On the other hand, the news strengthened the Japanese Yen (JPY) against the Great Britain Pound (GBP) on Tuesday, the pair witnessed a volatility of 276086 and closed 147.751 after touching the highest and lowest level around 148.252 and 147.054 respectively.
Generally speaking, a high reading in this regard is taken as a bullish trend for the Great Britain Pound (GBP) whereas a low reading implies a bearish trend for the Great Britain Pound (GBP).
Forex amid Economic Releases
Economic releases are one of the most integral parts of a trader’s life. To remain updated concerning the economic events in this fast-paced economic era, economic calendars become handy. As far as the factors affecting the forex with respect to economic releases, there are various forces that play a vital role in the price movement of currencies including GDP (Gross Domestic Product) inflation and employment levels.
As far as the degree of sensitivity amongst these forces is concerned, GDP has more votes. A gross domestic product news is considered as the backbone of the country’s economy since it reveals the prevailing health and performance of a country economy over the given time frame.
The forex market is more or less driven by economic factors that can impact the strength and value of a national currency. Therefore, the economic outlook works as a determinant of a currency value of a country. Keeping an eye on economic factors and indicators can surely help you to stay within the game.