ADA Volatility Analysis for CPI, 11th September 2020

Data Analysis

The release

Released by the Bureau of Labor Statistics on 11 September 2020 at 8:30 AM EDT. The Consumer Price Index came in at 0.4% for August 2020, against 0.5% in July 2020. Consumer prices are still rising, but more slowly than before.

It arrived at the same moment as Core Consumer Price Index and Core Inflation Rate, so the reaction measured on this page belongs to all of them together.

Measured by Clometrix

Cardano's volatility ratio was 1.25x, against 3.64x for a typical CPI release since 2021. Its volume ratio was 2.33x, against a typical 6.80x. Under 1.5x is not a reaction at all: the market barely noticed this release. Both compare the quarter hour of the release with an ordinary quarter hour that same day, where 1.00x is no change: volatility is how far the price ranged, volume how much traded.

How Cardano moved

Cardano was at $0.0937 when the figure came out. Fifteen minutes later it was 0.53% lower, and an hour later 0.5% higher. Its high-to-low range in the hour after was 1.43% of its price, against 1.7% in the hour before.

What made it matter

Since 2021, CPI releases in the two weeks before a Fed decision have moved Cardano about as much as those at other times: a median volatility ratio of 3.67x across 28, against 3.64x across 42. This one came out 5 days before the Federal Reserve's 16 September rate decision. Its own ratio of 1.25x compares with 3.67x for those, so it moved the price less than its circumstances would suggest.

About Consumer Price Index

The Consumer Price Index (CPI) measures the monthly change in prices paid by U.S. consumers. The Bureau of Labor Statistics (BLS) calculates the CPI as a weighted average of prices for a basket of goods and services representative of aggregate U.S. consumer spending. The CPI is one of the most popular measures of inflation and deflation. The index is published monthly by the U.S. Bureau of Labor Statistics (BLS).