Factory Orders Indicator

Factory Orders is an important part of any trader's analysis for predicting the trend direction. Just like many other indicators, Factory orders are calculated and published by the American Bureau of labor statistics. The time of release is traditional — 11 a.m (Eastern Standard Time) on the 35th day after the end of the fiscal month. One week prior, there's a preliminary report which includes the most important numbers of Factory Orders.

What exactly does the Factory Order dynamics say?

The change of this indicator means a new result of recalculation of the total amount of new orders done by the customer. Thus, if Factory Orders increase, it clearly means an increase in demand, costs of costumers and income of companies and their stability. All the mentioned strengthens the American dollar. And just the opposite, if Factory Orders lowers, it affects the stability of the currency in a negatively.

How should one use Factory Orders in practice?

In general, the numbers allow us to consider the intensity of economic conditions changes subject to American Industrial Sector. This significantly facilitates the work with this or that tendency and time frame and thus allows for a more detailed evaluation of industrial prospects. 

But one shouldn't interpret the factory orders data literally. Experienced traders do not use it as a key criterion for strategy selection. The news about this indicator are used to prove the choice of this or that strategy concerning the market behavior.