Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:
How Will USD React to Consumer Sentiment Index?
What will happen?
America will announce prelim UoM consumer sentiment on March 11, at 17:00 MT (GMT+2).
Financial confidence is a leading indicator of consumer spending. This index reflects the overall economic activity. These data are released in two parts 14 days apart – preliminary and revised. The preliminary release is the earlier and thus tends to have the most impact.
Last time the result underperformed the expectations. As a result, AUDUSD gained more than 600 points.
How to trade on Prelim UoM Consumer Sentiment index?
- If the Prelim UoM Consumer Sentiment is greater than forecast, USD is likely to strengthen against other currencies.
- If the Prelim UoM Consumer Sentiment is lower than forecast, USD is likely to weaken against other currencies.
Instruments to trade: USDCAD, USDCHF, GBPUSD
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The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.