Do you trade your own country's currency differently?
Trading your home currency has a built-in bias: you read local news more vividly and think you know where the economy is going. Sometimes that's an edge; usually it's an emotional overlay.
Share:
- whether you trade pairs containing your currency
- how local news affects your read of it
- a time the home bias cost you
The inflation targets guide helps you read your own central bank like a trader, not a citizen.
Background: Inflation targets of the major central banks: Fed, ECB, BoE, BoJ, SNB, BoC, RBA and RBNZ
Most major central banks aim for inflation of about 2%, but the measures and ranges differ. A reference guide to each target, how recent inflation compares, and why the details matter for currencies.
What is the Federal Reserve's inflation target?
2% over the longer run, measured by the annual change in the personal consumption expenditures (PCE) price index.
Which central banks have an inflation target range?
The Bank of Canada targets 2% as the midpoint of 1–3%, the Reserve Bank of Australia targets 2–3%, and the Reserve Bank of New Zealand targets 1–3% with a focus on the 2% midpoint.
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