Inflation trading: what's your CPI playbook?

CPI decides rate expectations more than any other release, so its playbook deserves its own rules: the components that matter, the revisions to watch, and the pairs that react most.

Inflation trading: what's your CPI playbook? — risk-reward diagram
A risk-reward ratio of 1 to 2

What's yours?

  • which part of the report you trade (headline, core, details)
  • the pairs you use for the trade
  • your risk rules for the release minute
Inflation trading: what's your CPI playbook? — candlestick anatomy diagram
The parts of a candlestick: wick, body, open and close

The CPI guide explains the report's anatomy.

Background: CPI explained: headline and core inflation for forex traders

The consumer price index is the inflation figure markets watch most closely. What it measures, why core CPI matters and how it links to interest rates.

What is the difference between headline and core CPI?

Headline CPI includes all items in the basket. Core CPI excludes food and energy, whose prices are volatile, to show the underlying trend in inflation.

What time is US CPI released?

At 8:30 a.m. New York time, usually around the middle of the month, by the Bureau of Labor Statistics.

Read the full guide

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