Forex traders like other investors in major markets give great attention to the economic news released throughout the day. This is because economic data (or economic indicators) often affect trading trends both in the stock market and in the currency market such as 1K Daily Profit APP. One of the most common economic indicators used by Forex traders and other investors is the durable goods report.

Definition of durable goods

Before discussing the same report, the term “durable goods” needs some explanation. Durable goods are goods that have been kept for more than three years or, in other words, the consumer expects to purchase goods that he will not replace in the near future. Examples of durable goods are cars, furniture, machinery, hardware and manufacturing equipment.

Durable Goods Report

The durable goods report is issued within the 20th of each month to measure the activities of the previous month. The report measures the number of new orders from durable goods orders, leaving data from more than 4,000 plants in about 85 industries. Typically, the transfer and defense processing numbers are deducted from the report due to their high degree of volatility.

This report is vital to investors as it is one of the leading indicators of the economy as a whole. This means that when the figures of the report are strong (ie, the high number of orders or orders), this means that consumers are likely to buy more durable goods, which gives a boost to the local economy. On the other hand, if Durable Goods demand figures fall, this means that consumers are likely not to increase their buying levels, which has negative effects on the currency rate.

Non-defensive capital goods

In addition to the large number of durable goods orders, this report also includes requests for manufacturing non-defensive capital goods. Non-defensive capital goods refer to orders for capital equipment manufacturing in non-defense areas, which is one of the important parts of the report as representing the manufacturing sector of industrial production tools in all sectors of the national economy. Like other sectors, non-defensive capital goods orders are a leading indicator of the health of the economy as a whole. If the demand for these types of goods increases, this is a good indicator of the growth of the economy (and consequently positively affects the currency price). On the other hand, the decline in demand for the manufacture of this type of goods is a strong signal of the possibility of imminent decline in economic activity.

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The Establishment Survey and the Forex Market

Building a 1K Daily Profit APP strategy for the Forex market depends on two main variables: Technical Analysis and Fundamental Analysis. The technical side analyzes currency fluctuations over time (through charts), while the main aspect focuses on economic data and political news. This economic news is available on most Forex trading platforms on the Internet, often without additional charges. One such data is the facility survey, which is a key part of the Employment Status Report, or the Work Report.

Definition of facility survey

Survey facilities measures a few functional variables by conducting a survey of nearly 400,000 companies employing about 47 million people across the country. The survey is conducted on a monthly basis (on the twelfth of each month), while the results are announced on the first Friday of the following month. Here we will mention the main sections of the facility survey:

Non – agricultural jobs

This figure represents the number of wage earners in the country except for the following employees:

Agricultural workers (hence referred to as non-agricultural jobs)
Independent contractors who know from a private residence
Government employees
Employees of non-profit organizations

Although nonfarm payrolls exclude a large proportion of the population, their impact remains strong given the nature of their timing and the large number of participants in the survey, so they retain their primary importance in shaping the overall picture of employment in the country.

Average hourly income

This section of the survey of establishments represents the average wage per hour during a particular month. This information is important because it measures monthly changes in incomes and purchasing power of individuals, which in turn have a significant impact on the state of the economy in general. This decline or rise in average hourly wages can also be matched with the monthly inflation rate to see if wages are consistent with inflationary pressures.

Average weekly working hours

Although they may appear to be an insignificant economic indicator, the average weekly working hours may have a real impact on the economy. If the average weekly working hours change by as much as 1%, this may translate into measurable gains or losses in the level of productivity of the macro economy as well as monthly income figures.

Total working hours

This figure represents the total number of work hours per month for all non-agricultural workers (part-time and full-time). Is one of the important indicators to measure the overall health of the economy.

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