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Handling conflicting signals from CPI vs. PPI
I'm still getting my head around interpreting these larger economic releases. When we see a disconnect, like CPI cooling but PPI remaining stubbornly high, how do most of you reconcile those for your short-term outlooks, especially for something like $EURUSD?
1 comments · 6 points
CPI and PPI divergence is tricky. I generally prioritize CPI for immediate FX impact on consumption outlook, but PPI can signal future CPI pressure. For EURUSD, watch the spread between US and EU numbers, not just the absolute values.