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 US Consumer Confidence?
What will happen?
US consumer confidence will be announced at 5:00 MT (GMT+3) on Tuesday, July 27.
This indicator reflects consumer spending, which accounts for most of the overall economic activity. In other words, it shows how much money consumers spend during the reference month compared with the previous one.
What’s the trend?
The Conference Board Consumer Confidence Index improved further in June, following gains in each of the previous four months. The Index now stands at 127.3, up from 120.0 in May. The Present Situation Index — based on consumers' assessment of current business and labor market conditions — rose from 148.7 to 157.7. The Expectations Index — based on consumers’ short-term outlook for income, business, and labor market conditions — improved to 107.0, up from 100.9 last month.
How to trade on the US consumer confidence index?
- If the consumer confidence index in the USA rises, the US dollar will likely strengthen against other currencies.
- If the consumer confidence index drops, the US dollar can fall.
Instruments to trade: AUD/USD, EUR/USD, USD/CAD, USD/CHF
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