#CurrencyPairPrediction
Economic Sentiment Indices
Description: Uses composite indices (e.g., ZEW Economic Sentiment, Ifo Business Climate) to gauge business and investor confidence, predicting economic activity and currency strength.
Advantages: Forward-looking, sensitive to economic shifts, and impactful for specific regions (e.g., EUR for ZEW).
Disadvantages: Soft data, less reliable than hard indicators, and volatile market reactions.
Conclusion: Useful for short-term trading around releases but secondary to hard economic data.
Recommendations: Focus on surprises in sentiment indices. Combine with PMI for confirmation.
#CurrencyPairPrediction
Economic Sentiment Indices
Description: Uses composite indices (e.g., ZEW Economic Sentiment, Ifo Business Climate) to gauge business and investor confidence, predicting economic activity and currency strength.
Advantages: Forward-looking, sensitive to economic shifts, and impactful for specific regions (e.g., EUR for ZEW).
Disadvantages: Soft data, less reliable than hard indicators, and volatile market reactions.
Conclusion: Useful for short-term trading around releases but secondary to hard economic data.
Recommendations: Focus on surprises in sentiment indices. Combine with PMI for confirmation.