The UK GfK consumer sentiment index will be released at the top of the hour plus 1 minute (so 7:01 PM ET). The expectation is for a reading of -18 vs -19 last month.
The GfK Consumer Confidence Index is a measure designed to evaluate consumer sentiment regarding the overall economic situation, personal financial circumstances, and readiness to make significant purchases among other factors. It is often used as an indicator of the health of the economy, reflecting how optimistic or pessimistic consumers are about their financial situations and the general state of the economy. Changes in consumer confidence can influence economic activities, as high confidence levels are typically associated with increased spending and investment by consumers, while low confidence can lead to reduced spending and saving instead.
GfK stands for "Growth from Knowledge." It is a global research firm based in Germany that conducts various market and consumer research, including the Consumer Confidence Index. The firm collects data on consumer expectations about the economy's general situation, their personal financial situation, and their willingness to make significant purchases. This information is gathered through surveys and is then compiled into an index. The index values are normalized to provide a clear indication of changes in consumer sentiment over time, where positive numbers generally indicate optimism and negative numbers indicate pessimism.
Now that we know that, why is it release at 7:01 ET in the middle of the UK night?
The GBPUSD is trading at 1.26614. The price is testing the 200 bar MA on the 4-hour chart at 1.26631.
Yesterday the price moved above that MA level and squeezed to a high of 1.27087, but failed on the break and rotated back down. Recall, the price tested that MA and found sellers last week and earlier this week. It still is a key level.
