Contacts

DURABLE GOODS ORDER

Definition

An active forex broker or trader will often look at reports of a country’s durable goods orders as a way to determine the strength and future trends of a particular nation’s economy. Durable goods are goods that have normal intended lifespans of three years or more.

Durable goods order reports seek to measure current and future manufacturing activity by calculating the value of all shipments, orders, and unfilled orders of durable goods.

Forex Trading Importance

Decisions and strategies in forex trading can often be influenced by durable goods order reports. More demand for a country’s goods, from either foreign or domestic sources, is indicated by an increasing index; this increase signifies a likely rise in employment and producing. The opposite is true of a falling index.

Forex trading platforms generally do reflect changes based on release of these reports. However, the reports can be volatile and subject to revision, so FX trading isn’t always affected. Many of these issues can be lessened by discounting increases in aircraft and defense orders from the overall total; these industries have been known to skew the figures.