A1 Trading Company

FUNDAMENTAL ANALYSIS COURSE

How to Trade Consumer Sentiment

What is Uom Consumer Sentiment?

The University of Michigan consumer sentiment conducts a survey on about 500 consumers to get an understanding of  how they are feeling about current and future economic conditions.

What does it tell us?

This survey helps traders to gauge consumer financial confidence. With a better understanding of how people feel about the economy, traders can have an understanding of potential directions in the market.

Why Consumer Sentiment Matter

The economy is all about the consumer. With a stronger consumer comes more economic activity. When consumers have money in their pockets they are more likely to spend more money as well as borrow more money, which in turn stimulates the economy. 

How this Impacts Stocks

Consumer Sentiment
Stocks
Why?
A higher customer sentiment indicates more people are spending money. In this environment, businesses thrive leading to higher earnings and growth for stocks. 
Consumer Sentiment
Stocks
Why?
When consumer sentiment is worse, people are spending less money. This could cause earnings to weaken.

How this Impacts USD

Consumer Sentiment
USD
Why?
A stronger consumer sentiment would indicate a stronger economy.
Consumer Sentiment
USD
Why?
A weaker consumer sentiment would indicate a weaker economy.

How this Impacts Gold

Consumer Sentiment
Gold
Why?
A stronger consumer sentiment would indicate a stronger economy. This is a bearish sign for gold.
Consumer Sentiment
Gold
Why?
A weaker consumer sentiment would indicate a weaker economy. This is a bullish indication for gold.
A1 Edgefinder

All-in-One Fundamental Dashboard

Using powerful market data such as COT, retail sentiment, and seasonality, the EdgeFinder's top setups page will automatically build a list of the top buys and top sells.

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There is a significant degree of risk involved in trading securities. With respect to foreign exchange trading, there is considerable risk exposure, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or currency pair. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you can afford to take the high risk of losing your money.
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