Drop in Consumer Confidence

[Rambo35]

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.

 

[Pharaoh]

If consumer confidence drops in all countries, then the relative value of currencies won't be much effected. On the other hand, what do consumers who are not confident in their national economy and currency usually buy to protect themselves?

I'll give you some hints: There are several related items. All are shiny. The two most prominent ones used to be commonly used in coins.

 

[Rambo35]

If consumer confidence drops in all countries, then the relative value of currencies won't be much effected. On the other hand, what do consumers who are not confident in their national economy and currency usually buy to protect themselves?

I'll give you some hints: There are several related items. All are shiny. The two most prominent ones used to be commonly used in coins.

Trading gold and silver can always complement your trading. In the end, it really does not matter what happens in the global economy, at least not for a trader. You can make money either way.

 

[willforex]

Trading gold and silver can always complement your trading. In the end, it really does not matter what happens in the global economy, at least not for a trader. You can make money either way.

Agree. What do you think about Bitcoin ? Is it new Gold ?

 

[Pharaoh]

Agree. What do you think about Bitcoin ? Is it new Gold ?

Let me think. My US money is backed by the full faith and credit of the US Government, for whatever that's worth. At least the Fed is ready to step in and prevent a total meltdown if necessary.

Bitcoin is backed by the full faith and credit of what?

I'm not saying that it may not gain crazy amounts of value. What I am saying is that it's nothing but an item that exists only online and that could lose 100% of its value in the blink of an eye. The Fed won't step in and bail them out of there's an issue. The Fed could decide to give bitcoin the same treatment as Liberty Reserve.

 

[fxapex]

you cannot compare bitcoin with forex both are completely different....

 

[Pharaoh]

The reason bitcoin came up was that some forex brokers are offering the option to trade pairs involving bitcoin as a currency.

 

[mominul]

yes when the value of currency change it effect the consumer confidence.

 

[fxwin001]

what u think about ger30??

 

[Adrik]

mostly consumer drop confidence when they have no enough knowledge ,money and experience.