A higher-than-expected figure should be seen as positive (bullish) while a lower-than-expected figure should be seen as negative (bearish).
The impact of Machinery Orders Month-over-Month (MoM) on Forex trading lies in its ability to provide real-time insights into the short-term trends in a country’s industrial sector. Machinery orders, representing investments in capital goods, are closely watched by Forex traders as they indicate the immediate health of the manufacturing and production sectors. A positive MoM change in machinery orders typically suggests increased economic activity and business investment, potentially strengthening the respective currency. Conversely, a decline in machinery orders MoM may be interpreted as a signal of reduced economic activity and can lead to a weakening of the currency. Forex traders use these monthly figures as part of their fundamental analysis to gauge the current economic conditions and adjust their trading strategies accordingly.