The Fundamental FOREX Blog

Tomorrow, Friday 12-11-09 at 9:55 AM ET the University of Michigan will be releasing two news reports, Consumer Sentiment and Inflation Expectations, which are released monthly.

The last time this report was released was on Friday, 11-13-09, I wrote a “follow up” post, click here for a review.

By reviewing last months post and the charts (no charts recorded last month), you can learn much about how to trade and what are the best currency pairs to monitor for a trade set up.

Keep this in mind, most FOREX web sites that display a FOREX Calendar show this report as coming out at 10:00 AM ET instead of 9:55 AM.

I use FOREX Factory’s Calendar, FF has provided a button that can be used to acquire news reports at about the same time they are being released. Click here for the FOREX Factory calendar.

Lets see how the stats are for this report tomorrow:

USD U. of Michigan Confidence Stats:

Previous = 67.4

Forecast =  68.7

The U of M believes that “confidence” is improving.

Last month I recorded the wrong charts, also I did not enter a trade.

This from the FOREX Factory Calendar:

Actual > Forecast = Good for currency (Note: While this is the ‘usual’ effect, under current market conditions the reverse tends to be true against some currencies, as bad data has been triggering the purchase of US bonds);

Last month I was looking for a difference of 10.0 between the “actual” and “forecast”, but the difference was only 5.1, and 4.6 difference from the “previous”.

Keep in mind, some of the traders get the U of M reports at 9:55 AM ET and others do not get them until 10:00 AM ET. Check the charts for last month for an idea how the market reacts.

I did post a “follow up” of this months reports, click here to see what happened.

This report is next scheduled for release on Friday, 01-15-10 at 9:55 AM ET.

I will probably post a “preview” a day or two prior.

Stay tuned!