Forex encyclopedia

Forex is an international currency exchange. In accordance with the name, one can immediately determine that the main «products» here are the national currencies. The structure of the market is somewhat similar to the exchange office. Currency units are sold or bought, taking into account the value positions that exist at the current time. Due to the difference in exchange rates, you can make a significant profit if you buy or sell a certain currency at the appropriate times.

Japan Corporate Goods Price Index (CGPI) is an economic indicator calculated on the basis of price of goods acquired by Japanese enterprises. The index inter alia accounts for feedstock prices directly impacting on the final cost of manufacturing, therefore, this index is used by companies to adjust prices for its production. CGPI also accounts for the transportation prices. If apart from growth of CGPI Japan experiences rise in index of consumer prices, it tells about rise in inflation in the country. In its turn, it signalizes Bank of Japan about the possibility of raising of major interest rates. When published index value is above expected, it gives a slight support for consolidation of national currency.