User Name: Password:      Register - Lost password?
Search In...

         A Live Learning/Help Forum
             VIDEOS -
                 Mov Avgs (6)
         Currency Futures
         Market Terminology
         Posting a Forum Chart
         Trade Execution
         Trade Management
         Trading Fundamentals
             Economic Indicators
             Flows/Central Banks
             Risk Aversion
         Trading Psychology
         Trading Technicals
         Trading Techniques

         Module 1: The Basics of Forex Trading
         Module 2: The Logistics of Forex Trading
         Module 3: The Logistics of Forex Trading Part 2
         Module 4: What Moves the Forex Market
         Module 5: Trading the US Dollar
         Module 6: Trading the Euro
         Module 7: Trading the Japanese Yen

  VIDEOS: Trading Basics
         Module 1: Technical Analysis Basics
         Module 2: Chart Patterns
         Module 3: Technical Indicators
         Module 4: Candlestick Chart Formations
         Module 5: The Psychology of Trading
         Module 6: Money Management
         Module 7: Position Sizing
         Module 8: Intro to Fundamental Analysis
         Module 9: Economic Releases that Move the Markets
         Module 9a: Pulling It All Together

  Help/Learning Forum Topics

Found In....
Category Name: VIDEOS: Trading Basics
Lesson 9: How to Interpret the Consumer Confidence Index
How to Interpret the Consumer Confidence Index

In our last lesson we looked at Existing Home Sales and what this number tells us not only about a very large part of the economy, but also the economy as a whole. In today’s lesson we are going to look at another indicator which surveys the consumer’s opinion on the current state of the economy, and tends to lead the business cycle: The Consumer Confidence Index.

Released at 10am EST on the last Tuesday of each month, the Consumer Confidence Index (CCI) is a monthly survey of over 5000 households, the purpose of which is to gauge the financial health, spending power, and confidence of the average consumer.

The CCI contains three separate headline numbers which are:

1. The Index of Consumer Sentiment: How people feel about their current financial conditions.

2. Current Economic Conditions: How people feel about current economic conditions in general.

3. The Index of Consumer Expectations: How people foresee things being in six months time.

The consumer will normally adjust spending habits based on how optimistic they are about the economy, pulling back when they feel things are souring to save more and vice versa. As we have discussed many times in previous lessons, the consumer and private consumption is such a large part of the US economy so because this indicator gives good insight into this segment it is closely watched by market participants.

It is important to understand here however that this is a survey based on people’s opinions and, unlike most of the other indicators we have studied up to this point, the individuals surveyed are not likely basing their opinions on hard data. It is for this reason that consumer opinion can be easily swayed by things such as short term spikes in gas prices, and why most market participants will use a 3 to 6 month moving average of the data to get a better picture of trends in consumer thinking.

As with many of the other leading indicators we have studied thus far, the Consumer Sentiment Index component is included in the Conference Board’s Index of Leading Economic Indicators making that component all the more important to the market.

Also as with all of the other indicators we have studied up to this point the best way to get a feel for how the market is going to react to this number under different scenarios is to follow the indicator in real time. With this in mind I will post a discussion piece in the comments section of this lesson on a link to which you can find in the description section of this video if you are watching on Youtube.

That’s our lesson for today. In our next lesson we are going to wrap up our discussion on Economic Indicators with a look at the Conference Board’s Index of Leading Economic Indicators so we hope to see you in that lesson.



Actionable trading levels delivered LIVE to YOUR charts

GVI Trading. Potential Price Risk Scale
AA: Major, A: High, B: Medium

Mon 27 May 2019
AAGB/US- Holiday
Tue 28 May 2019
A 14:00 US- Consumer Confidence
C 13:00 US- Case-Shiller
Wed 29 May 2019
A 08:55 DE- Employment
AA 18:00 US- BOC Decision
A 18:30 US- EIA Crude
Thu 30 Mar 2019
AAEZ/CH- Holiday
A 12:30 US- Weekly Jobless
Fri 31 Mar 2019
AA 10:00 EZ- Flash HICP
A 12:30 US- Personal Income, Spending, Deflator
AA 14:00 US- Final Univ of Michigan

Global-View Affiliate Program

We are starting an affiliate program to market some of our products.

Send me an email if you would be interested or if you know someone who would like to be an affiliate. Generous commissions payout for those accepted.

Put the word "affiliate" in the email subject line.

Contact us

Start trading with forex broker Markets Cube


Retail Forex Brokerage Changing!

Are you looking for your first broker or do you need of a new one? There are more critical things to consider than you might have thought.

We were trading long before there were online brokers. Global-View has been directly involved with the industry since its infancy. We've seen everything and are up-to-data with recent regulatory changes.

Our Best Brokers listing section includes:Forex Broker Reviews, Forex Broker Directory, Forex Broker Comparisons and advice on How to Choose a Forex Broker

If would like guidance, advice, or have any concerns at all ASK US. We are here to help you.

SEE Our Best Brokers List

Currency Trading Tools

  • Live rates, currency news, fx charts. 

  • Research reports and currency forecasts.

  • Foreign Exchange database and history.

  • Weekly economic calendar.

Directory of  Forex trading tools

Terms of Use    Disclaimer    Privacy Policy    Contact    Site Map

Forex Forum
Forex Trading Forum
Forex Forum + forex rates
Forex Forum Archives
Forex Forum RSS
Free Registration

Trading Forums
Currency Forum Guide
Forum Directory
Political Forum
Forex Brokers
Compare Forex Brokers
Forex Broker News
Forex Broker Hotline

Forex Trading Tools
Currency Trading Tools
Forex Database
FX Chart Points
Risk/Carry Trade Chart Points
Economic Calendar
Quicklinks to Economic Data
Currency Futures Swaps
Fibonacci Calculator
Currency Futures Calculator

Forex Education
Forex Learning Center
FX Trading Basics Course
Forex Trading Course
Forex Trading Handbook

Forex Analysis
Forex Forecasts
Interest Rate Forecasts
Central Bank Forecasts

FX Charts and Quotes
Live FX Rates
Live Global Market Quotes
Live Forex Charts
US Dollar Index Chart
Global Chart Gallery
Daily Market Tracker
Forex News
Forex Blog
Forex News
Forex Blog Archives
Forex News RSS
Forex Services
The Amazing Trader
Forex Opportunities
Forex Affiliates
Forex CopyTrading
GVI Forex