Trading the News: CB Consumer Confidence

Hello,
I never trade the news.
However I have a question because some times I just put some play money on the line just to see what happens.
I see that today at 8am there was the "CB Consumer Confidence".
The number was lower than expected.
The comment in Forex Factory says
"Actual > Forecast = Good for currency"
The number was
"Actual < Forecast" so I'd think it's Bad for currency, so EUR/USD should go north.

However it's going south in a very strong movement.

PLEASE post only if you know what you're talking about. Please don't "try to explain" with phrases like:
- Fundamentals are not to be believed.
- The crowd's behavior is erratic.
- The market is triggered by the news but nobody knows it's results.
or any of those cheap philosophic phrases. If you don't trade the news or don't know why this happens, please save your phrase-from-a-book. If you don't trade professionally please omit your comments.

If you know what you're talking about (CB Consumer Confidence's impact on EUR/USD) I'd really appreciate an explanation.

Thanks in advance.

A large percentage drop, from 54.8 to 49.3, in U.S. consumer confidence numbers printed on Tuesday sent global equity markets lower, oil and gold plummeting, Treasury notes higher, and the Usd up heavily. The move to the safety of U.S. bonds, and by default the Usd, has sent the major pairs towards the lows of the week, and offers one of two things; the chance to buy support, or the opportunity to see if this is the 4 hour chart range top that was just hit now sends currencies lower to test the early June lows.

Exactly. It has sent them to lower points.
However, if USD goes down (weakens), EUR/USD price in chart goes up.
In this case, if USD goes down, why would price in chart go down?

Large institutions are moving into US bonds... to buy bonds you need US dollars and a rush to get USD creates demand.

The dollar is strengthening, hence the chart is moving down since the euro is weakening.

My Consumer Confidence hasn't change in about 2 years lol.
Don't feel any effects for the crisis yet. Probably never will.

BUT the comment in Forex Factory says
"Actual > Forecast = Good for currency"
The number was
"Actual < Forecast" so I'd think it's Bad for currency, so EUR/USD should go north.

This is what I don't understand!

Why, if the news was bad for currency, the dollar got stronger?

Why do you think that forex factory is always right? I assure you, the market does not check in here to see if it is doing what it is "suppose" to.

When things are uncertain (as they have been), the slightest sneeze will send the global economy into a cold and when that happens safety is preferred.

Is a lower consumer confidence good? No. But where do you turn for safety? Bonds, although they may not pay much they are backed by the full faith of the US Government and theoretically your money will be safe and could possibly earn a bit of interest. But we dont sell bonds in euros or pounds so you must exchange those currencies for dollars.

You are right and FF is right as well. The problem is that currently the fundamentals don't work that way. Actually I don't think it was that news that did let the Dollar gain today but simply profit taking because today is the last day of the first half of 2009. There were a lot of books closed I can imagine.

I expect to return to normal fundamentals within the next months. At the moment the Dollar is still the safe haven, so every bad news will support the Dollar even though it shouldn't...