Surprisingly (or not), the consumer confidence index went down to 50.4 with expectations for 56. This shouldn't be a surprise to anyone. Gas prices are the super-high, food prices are soaring, and getting a loan is tougher than two years ago. No consumer will be confident in that situation. The dollar took a dive after the report, Forex Funnel made $100.
Today there are two important reports and announcements. The first one is oil inventories, which, as you know, can make oil price be very volatile. However, the most important announcement for today is the new Fed interest rate. This should make the dollar move.
Today at 2:15pm EDT we will finally know if Bernanke is trying to avoid inflation, avoid a recession, or wait another six weeks before deciding. Watch out for your positions.
Good luck trading today,
Nadav
nadavs
Wednesday, June 25, 2008
The Big Day
Tuesday, June 24, 2008
Consumer Diffidence
Yesterday was an ordinary day without much events. Even the Dow and S&P indices felt this big nothing and moved about 0% (yes, zero) and 0.01%, respectively.
Today the consumer confidence report is due today, and it will a good gauge for economic activity. Without confidence, there are less consumers and the future doesn't look bright, as consumers make 2/3 of the US GDP.
Tomorrow is the big day with the announcement of the new interest rate. Bernanke will have to choose between restraining inflation and raising rates and avoiding a recession and lowering (or keeping) rates. Tomorrow at 2:15pm EDT, don't miss.
The dollar got stronger yesterday, rising against most major currencies. Like always, Forex Funnel managed to extract $100 out of the market. Let's see what happens tomorrow, after the interest rate announcement.
Good luck with your trades,
Nadav
nadavs
