What Is Producer Price Index PPI And It Influence On The Currency Market?

1 January 2017, 15:42
Ahmad Hassam

You should daily check the Economic News Calendar.

Producer Price Index (PPI) is an important economic news release.

PPI has the potential to move the market big time if there is deviation between the expected and the actual.

Read this blog post in which I explain what is Producer Price Index PPI and how it influences the market.

Markets work on the principle of expectations.

Before the release of PPI figures, analyst make an estimate of PPI that is expected.

When the actual data is released, if the actual is different than the expected by a large margin, market will adjust itself.

This brings a period of volatility in the market that can make a lot of pips for you.

If the actual and the expected are roughly the same, there will be little reaction.

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