CB stands for Conference Board Inc. and the indicator represents a composite index based on surveyed households.
About 5000 households are being surveyed and respondents are being asked questions regarding the overall situation, economic conditions, labor availability in their area, etc., information needed for composing this indicator. The result is a composite index that reflects the level of consumer confidence and it is closely watched by traders because it is directly linked to financial confidence and this one is influencing the all important consumer spending.
Values higher than the forecast should be interpreted as being positive for the currency, while lower than expected releases should be interpreted as being negative for the currency. However, in our days, I would say that actual higher than the forecast should be viewed as favoring the risk on environment, while actual lower than the forecast should be viewed as favoring the risk off environment.
The most important things to take into consideration when looking at CB Consumer Confidence indicator are:
- release date: monthly, on the last Tuesday of the current month;
- release time: 14:00 GMT, during the North American trading session;
- first tier data;
- volatility expected surrounding the release.