A fundamental aspect of the market
Due to the fact that the bulk of transactions in the currency market has a course against the dollar, more influenced by U.S. macroeconomic indicators, and can be divided into several groups.
National Association of Purchasing Managers - NAPM (National Association managers index for wholesale purchases) - includes data such as orders, production, employment, inventories, delivery times, prices of exports and imports. The overall index is calculated by weighing the five indices of orders - 30% of production - 25%, employment - 20% of delivery - 15%, inventories - 10%. The indices are calculated for each of these categories, with a value of more than 50%, reflecting an increase from the previous month and below 50%, indicating reduced compared with the previous month. The overall index are determined based on a survey of companies 4.000. Since the He published the first working day of the month, then its value can anticipate reporting the volume of industrial production, published in the middle of the month (government research data include over 60,000 companies).
The index value of more than 50% said the rise of production, less than 50% - of the recession. The growth rate increases the NAPM. An example is the publication of the NAPM March 1, 1999 increase in February, up 52.4% from January's 49.5%.
NAPM index is one of the first comprehensive economic characteristics of the month. During the period of inflation concerns the price of supplies from suppliers often determine the market reaction to the economic processes. Many economists do not include an index in the projections, but the stock market typically reacts to his appearance.
As already mentioned, he published the first working day of the month. It can be regarded as an index of business activity.
Factory Orders (Orders for factory goods). This indicator shows the need for industrial production of durable goods and non-durables. Increasing the value of this indicator characterizes the activity of production and its possible growth, while reducing the production of evidence of folding. Therefore, an increase of this index rate increases and decreases - is falling.
The index is published monthly.
Durable Goods Orders (Orders for durable goods).
This indicator points to the need for the goods for a period of more than 3 years. This is usually expensive goods (eg cars), so this indicator reflects not only the expectations of consumers, but also the ability of the latter to spend large sums. The increase in this index positively characterizes the state of the economy and production, so it helps to enhance the growth of currency and stock market and falling currency weakens and can lead to a decrease in the stock market.
The index is published monthly.
He serves as an indicator of consumer confidence, as it increases the exchange rate increases.
