What is Consumer Confidence?
Consumer Confidence
Forex Trading Glossary
Quick Answer: Consumer confidence gauges household optimism about the economy; rising sentiment supports spending and risk appetite.
What is Consumer Confidence?
Consumer confidence measures how optimistic households feel about the economy and their personal finances. Rising confidence supports spending, while falling confidence can foreshadow slower growth.
Key Consumer Confidence Reports
- U.S. Conference Board Index: Released monthly.
- University of Michigan Sentiment: Preliminary and final readings each month.
- Eurozone confidence: Monitored via European Commission surveys.
- Regional indicators: Many countries publish similar sentiment gauges.
FX Impact
Strong consumer confidence can support risk-on currencies because it implies resilient domestic demand.
Using Confidence Data
- Trend monitoring: Sustained increases reinforce bullish macro themes.
- Event trading: Consensus beats or misses can move currency pairs tied to retail spending.
- Cross-check: Compare with retail sales and employment data for confirmation.
- Regional analysis: Sentiment divergences within Europe or North America create cross opportunities.
Related Terms
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