Markets & trading FAQ
Answers to the most common questions about markets, macro and trading.
Why does the CPI move markets?
The CPI measures US inflation. A hotter-than-expected print pushes the Fed to keep rates high, which weighs on stocks and risk assets; a softer print fuels hopes of a rate cut and supports the market.
Why does gold fall when the dollar rises?
Gold is priced in dollars. When the greenback strengthens, an ounce becomes more expensive for buyers in other currencies, which cools demand and pressures the price.
What time is the US CPI released?
At 8:30 a.m. Eastern, which is 2:30 p.m. in Paris. It is one of the most closely watched macro releases of the month.
How does oil affect inflation?
Persistently expensive crude raises energy, transport and production costs. These pressures feed into consumer prices and make it harder for central banks to bring inflation back to target.
What do risk-on and risk-off mean?
In risk-on mode investors favor risk assets such as stocks or crypto. In risk-off mode they rotate into safe havens like the dollar, gold or government bonds.
What is the FOMC?
The FOMC is the Federal Reserve's monetary policy committee. It meets eight times a year to set the policy rate, a decision that directly moves stocks, the dollar and gold.
What does the VIX measure?
The VIX gauges the expected 30-day volatility of the S&P 500 based on options prices. Above 20 it signals higher-than-normal nervousness; below 20, calmer markets.