Drop in Consumer Confidence

Are you guys concerned by the drop in consumer confidence around the planet and do you account for it when you analyze currency pairs?

I am not big on fundamentals and usually do not pay too much attention when it comes to them. Of course I am aware when reports are released as they do impact currencies short-term and it makes no sense not to capitalize on them. I did notice that there is an overall drop in consumer confidence and while consumer confidence data is not an accurate gauge of potential economic output I think we should at least take not as it happens globally and not just in a few economies.

Anyway, just my thoughts on what I noticed.

Drop in consumer confidence is most noticeable in the US, yes, with their frequent recessions and shutdowns. Yes, the sad truth is when you get too careful, you get accidentally careless. Take for example the forex, US tries to pokenose into everything (most times for profits), throws regulation around (most times to protect the big spenders and wall street), defying the principles of capitalism (market freedom) on which it was found. What do you get at the end, giant brokers pull out with their clients taking their fortunes off the US. Why? They can’t afford to be paying tax mercilessly when the petty American trader is not protected, they can watch their innovation (and consequent client security) die away. They had to move offshore, and still they are surviving well. Clients are beginning to search for more competitive, interesting offers offshore. What do you think?

I agree that the US frequently attacks capitalism and takes steps which are counter-productive while it forces talent and money out of the country and invites failure into the country.