lagging indicator. The textbook example for a recession is two
straight quarters of negative GDP growth. We did not provide
a graphic example for the U.S. GDP because the market rarely
has a strong reaction to a U.S. GDP release, having taken its
measurements and made its reactions from the more timely
economic indicators. Figure 2-7 shows a chart for GBPUSD
after a Great Britain GDP release that came in at zero growth
and reinforced an existing downtrend.
The Producer Price Index
The producer price index (PPI) measures changes in the prices
received by producers for their output. It is a key indicator in