US durable goods orders beat expectations with a rise of 2.2%. They were expected to rise by 1.1% in February after dropping 1.3% in January (revised down from 1%). Core orders advanced by 0.2% within expectations for a tick higher by 0.3% after a rise of 1.1%. Most of the change is in transportation. Shipments are +0.9%.
Before the publication, EUR/USD traded around 1.38, USD/JPY at 102.35 and GBP/USD at 1.6540. Commodity currencies were moving higher. The US dollar is ignoring the headline number and sliding on the weak core figure.
The data has an impact on Q1 2014 GDP and the headline could raise expectations. However, the US economy is not speeding up just yet.
Yesterday’s economic releases were somewhat mixed, with new home sales coming out below expectations while consumer confidence came out at the highest since 2008.
The Markit flash service PMI number will be released later on and is expected to show an acceleration in growth. All in all, the Fed’s taper train seems to be on track.
More: 5 Most Predictable Currency Pairs – Q2 2014.
