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2nd Strongest Consumer Senitment Reading Since the Financial Crisis

Preliminary UM Consumer Sentiment (Sept): 84.6
Forecast: 83.2
Previous: 82.5 (revised up from 79.2)


(click to enlarge; source: forexfactory.com)


Consumer sentiment in Q2 has been strong so far. First of all, August's reading was revised up to 82.5 from 79.2. This showed that sentiment has been staying strong and did not dip in August. Secondly, and more importantly, the September reading of 84.6 is the highest in almost 2-years, since the 84.9 reading in Nov. 2012. 

This is also the 2nd strongest reading since the financial crisis.

This wraps up the Friday session with 2 strong US data points. The earlier retail sales data also beat forecasts.


Let's take a look the US Dollar Index (USDX). We are seeing that the USD is having a muted reaction to the positive data. This can indicate the market's need to consolidate recent USD-gains before putting on more greenback-strength. But if price pushes above 84.55, the USDX would be in fresh highs on the year, and would be in a bullish continuation mode after breaking above this week's consolidation range.

A break below 84.00 would be needed to open up a bearish correction scenario as it would make this week's price action a price top.

USDX 1H Chart 9/12

(click to enlarge)