We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • The trio of central banks overseeing the commodity currencies have already cut their main rates to all-time lows. Get your market update from @CVecchioFX here: https://t.co/OSUXrN5P3j https://t.co/Cxt86jl28N
  • The Japanese Yen fell for a third consecutive week with price testing resistance into June open. Here are the levels that matter on the $USDJPY weekly technical chart. Get your #currencies market update from @MBForex here: https://t.co/1QPXP0g7Ew https://t.co/WUtXHoRoQX
  • $USDZAR: A rally from here could be an important tell as to whether the level seen as support previously (17.76) will turn into a point of resistance for sellers to lean against. Get your $USDZAR technical analysis from @PaulRobinsonFX here:https://t.co/TNsQ4JJu6E https://t.co/I4yCjs2ja0
  • The US dollar continued to sell-off this week and the greenback’s future will be decided by commentary from the White House and not the Federal Reserve over the coming days and weeks. Get your #currencies market update from @nickcawley1 here: https://t.co/lpHneO3s2h https://t.co/bZ5klohLNd
  • #Gold prices have continued to push higher as expectations have built for global Central Banks to remain very loose and passive with monetary policy for the foreseeable future. Get your $XAUUSD technical analysis from @JStanleyFX here: https://t.co/h5tF3kAZfd https://t.co/VAYy9FGHcQ
  • Major investment bank models have touted USD selling, given the outperformance in US equities relative to its counterparts over the past month. How is this likely to impact the month-end rebalancing? Find out from @JMcQueenFX here:https://t.co/MtNrHmXZpD https://t.co/YvoHlUsdVr
  • U.S. Market Analyst at https://t.co/JsVsSmefgR, Shain Vernier covers - ✔️ Safe haven assets in volatile markets ✔️ Central banks and governments ✔️ How will commodities trade in a recession Only on Trading Global Markets Decoded #podcast. Tune in here: https://t.co/1UmEzEbwiy https://t.co/X15k6b4ZyB
  • The month of May saw equities rise across the board. The #Dow Jones and #DAX 30 will look to hold above nearby support while the #Nasdaq 100 may look to attack all-time highs. Get your #equities market update from @PeterHanksFX here: https://t.co/dQxkG68R0I https://t.co/cgfcOs14qG
  • There is a dramatic departure between yield curve pricing for a recession and other measures of near-term growth; the Q2’20 Atlanta Fed GDPNow is extremely alarming.Get your market update from @CVecchioFX here: https://t.co/eMd3T8EwDO https://t.co/56oUP6we9U
  • The #DAX has now closed the gap from the beginning of March with the index breaking above 61.8% fib at 11592. Get your DAX market update from @JMcQueenFX here: https://t.co/wr67nkxc8z https://t.co/CkxPZn1v3t
USDJPY Rebounds on Durable Goods Orders, Improved Claims Data

USDJPY Rebounds on Durable Goods Orders, Improved Claims Data

2012-07-26 13:43:00
Christopher Vecchio, CFA, Senior Strategist
Share:

THE TAKEAWAY: USD Durable Goods Orders (JUN) > +1.6% versus +0.3% expected, from +1.6% > USDJPY BULLISH

Orders for Durable Goods in June expanded by +1.6% for a second consecutive month, data released today by the US Commerce Department showed. A significant rise in demand for aircraft and military hardware easily made up for the slowdown in business equipment spending, a Bloomberg News analysis showed. What this means is that corporate spending is contributing less to economic expansion, and as the US economy as well as the global economy slows, it appears that any further gains in Durable Goods Orders appear limited.

Also released at 08:30 EDT / 12:30 GMT were the weekly labor market figures, which showed that Initial Jobless Claims dropped by 35K to 353K, according to the US Labor Department. This comes in well-below the expected figure of 380K. The four-week moving average of Initial Claims has now dropped to 367.3K, its lowest such level since late-March; the implication here is the labor market may be improving, which would in turn limit the likelihood of further accommodative efforts by the Federal Reserve.

USDJPY 1-minute Chart: July 26, 2012

USDJPY_Rebounds_on_Durable_Goods_Orders_Improved_Claims_body_Picture_5.png, USDJPY Rebounds on Durable Goods Orders, Improved Claims Data

Charts Created using Marketscope – Prepared by Christopher Vecchio

In reaction to the data, the biggest (and most important) mover was the USDJPY, which after dropping below 78.00 momentarily, rallied off of the psychologically significant figure and traded up to 78.21, at the time this report was written. Considering that the Japanese Yen and the US Dollar are both considered to be safe havens, the threat of dilutive monetary stimulus weighs heavily on the pairs. As such, when there is strong US labor market data, it tends to reduce the speculation for more QE from the Federal Reserve, which boosts the USDJPY as it did today.

--- Written by Christopher Vecchio, Currency Analyst

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

To be added to Christopher’s e-mail distribution list, send an e-mail with subject line "Distribution List" to cvecchio@dailyfx.com

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.