Skip to content
News & Analysis at your fingertips.

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. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
US Durable Goods Orders Report Favorable, but USD/JPY Losses Persist

US Durable Goods Orders Report Favorable, but USD/JPY Losses Persist

Christopher Vecchio, CFA, Yash Gandhi,

Talking Points:

- June US Durable Goods Orders came in at +3.4% vs +3.2% estimated (m/m).

- ‘Core’ orders had a +0.8% read vs +0.5% expectation from the prior month (m/m).

- See the DailyFX economic calendar for more US economic data prints in the week ahead.

June US Durable Goods Orders reported a +3.4% m/m change in June beating the +3.2% forecast produced by Bloomberg News’ survey of economists (m/m). Durable Goods excluding transportation - widely viewed as the ‘core’ reading - came in at +0.8% versus +0.5% forecast (m/m). Meanwhile, May’s data print was revised upwards to -2.1% from -2.2% (m/m).

The US Dollar experienced a slight spike on the back of the favorable data against its major counterparts, but the gains were only passing in context of the broader risk-off move developing across the globe at the start of the week. Immediate reaction in the USDJPY pair showed a +8-pip increase in the 1-minute candlestick at 12:30 GMT. The pair stemmed its gain and reaction was ultimately muted. At the time this report was written, the pair was trading at ¥123.16.

US Durable Goods Orders Report Favorable, but USD/JPY Losses Persist

Durable goods represent orders placed for long-lasting products (with lifespans typically lasting more than three years) and indicate whether consumers in a market are confident in a long-term investment. A stronger data print may indicate consumers are optimistic about a long-term investment (and thus, their finances) given current labor market dynamics. Durables excluding transportation eliminate bias from busses, aircrafts, or civilian vehicles, which distort the overall data, providing investors with a better measure of consumption.

Here’s a recap of all US economic data for July 27:

US Durable Goods Orders Report Favorable, but USD/JPY Losses Persist

Read more: Euro, Yen Rally as Dollar, Equity Markets Slip at Start of FOMC Week

--- Written by Christopher Vecchio, Currency Strategist

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, please fill out this form

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

DISCLOSURES