The key to successful FX trading, along with a little good luck,
is the ability to interpret forex resources and identify crucial swings
in the market. If you can predict dramatic changes before anyone else,
then you will have the advantage when investing with a forex broker. One
particular forex resource to pay attention to is the Factory Orders
Report. This report gives information on both durable and non-durable
goods orders. With this information, forex trading investors can make
projections concerning the future of the US dollar.
Factory Orders Report
The Factory Orders Report is released twice monthly by the US Census Bureau. The first report is the Durable Goods Report, which includes products that have a shelf-life of greater than three years. The Durable Goods Report is released approximately 18 work days into the month at 8:30 AM EST.
Another part of the Factory Orders Reports is the Non-Durable Goods Report, which classifies items such as food and tobacco that do not remain usable for extended periods of time.
The Manufacturers' Shipments, Inventories, and Orders Report comes out at 10 AM EST, around 23 work days after the first of the month.
FX Trading Significance
These series of reports detailing the trends in factory orders are important to FX trading because they provide inside information about the spending habits of consumers. The biggest factor in economy strength is consumer spending, which makes up around 66% of the market. If factories are lowering order forms, it could be in response to decreased demand for products. Thus, a steady Factory Orders Report signifies continual activity amongst consumers. A report with rising figures could indicate increased consumer confidence, which is a terrific sign for the economy and FX trading investors looking to use their forex trading platform to invest in that country's currency.
Relevance Amongst Other Forex Resources
The truth is that while Factory Orders Reports do provide important information, they are not the best indicators of market shifts for FX trading. Other forex resources do offer more pertinent information that is better for investing with a forex broker. The data provided by the Factory Orders Report tends to be general and can be affected by any number of factors. When examining the data, make sure to attribute legitimate reasons to account for possible monthly shifts, such as an increase in spending around the holidays. It is better to use the data to compare yearly figures, rather than going on a month to month basis, for more accurate results and greater gains with your forex trading platform.
Factory Orders Report
The Factory Orders Report is released twice monthly by the US Census Bureau. The first report is the Durable Goods Report, which includes products that have a shelf-life of greater than three years. The Durable Goods Report is released approximately 18 work days into the month at 8:30 AM EST.
Another part of the Factory Orders Reports is the Non-Durable Goods Report, which classifies items such as food and tobacco that do not remain usable for extended periods of time.
The Manufacturers' Shipments, Inventories, and Orders Report comes out at 10 AM EST, around 23 work days after the first of the month.
FX Trading Significance
These series of reports detailing the trends in factory orders are important to FX trading because they provide inside information about the spending habits of consumers. The biggest factor in economy strength is consumer spending, which makes up around 66% of the market. If factories are lowering order forms, it could be in response to decreased demand for products. Thus, a steady Factory Orders Report signifies continual activity amongst consumers. A report with rising figures could indicate increased consumer confidence, which is a terrific sign for the economy and FX trading investors looking to use their forex trading platform to invest in that country's currency.
Relevance Amongst Other Forex Resources
The truth is that while Factory Orders Reports do provide important information, they are not the best indicators of market shifts for FX trading. Other forex resources do offer more pertinent information that is better for investing with a forex broker. The data provided by the Factory Orders Report tends to be general and can be affected by any number of factors. When examining the data, make sure to attribute legitimate reasons to account for possible monthly shifts, such as an increase in spending around the holidays. It is better to use the data to compare yearly figures, rather than going on a month to month basis, for more accurate results and greater gains with your forex trading platform.
Patrick Kalashnikov is a freelance writer who is very knowledgeable about FX trading, and how to get started with a forex broker. For more information about forex trading, visit http://vertifx.com.