So just recently the “Reuters/Michigan Consumer Sentiment Index” came out with a report involving the confidence in the USD.

Beginner Questions Candlesticks, Chart Patterns, and Price Action
1

The consensus was 91.5, the actual was 90.4 and the previous was 90.0.

Since the consensus surpassed the actual it lead me to believe the market would not favor the USD. Then in about five minuets the GBP/USD went down 50 pips while most other USD base currencies surged about 20 pips.

Now that I look back, I must of just misread it. My guess is that the index technically showed more confidence in the U.S. economy but the consensus was just over valued.

Am I right or are there other outside events that I am not realizing?

Thanks in advance,
Andrew

2

I don’t follow the confidence figures but this is an interesting question. It would be healthy to understand better the way these things work and I wish I did.

But as for trading, I’m not sure the practical impact on your results would be worth making trade decisions based on your understanding of news data. I’d suggest that unless you’ve got more data than the big banks have, or more computing power, or you can get news earlier than they can, you will not have an edge and your results will be random.

1 Like