Durable goods orders fall 1.8%, much worse than expected in May. This followed a downwards revision of April to -1.5%. Core orders rose only 0.5% and that came on top of a sharper drop than reported, -0.3% according to the new data.Â
The USD is slightly lower. The core figure is a small miss, so the move is quite limited, especially against the euro. Update: the dollar is now rising across the board.
Update: FOMC’s Powell talks about a September liftoff – USD lifts off
Excluding transpiration, the figure is +0.5%, as expected.
Durable goods orders were expected to fall by 0.6% after a drop of 1% last month (before revisions). Core orders, which reflect long term investment, carried predictions for a rise of 0.6% after dropping 0.2%. Significant revisions are quite common and so is volatility.
The greenback is making a comeback that began in the Asian session and is most pronounced in major pairs. In addition, the euro has been falling with German yields.
We later get Markit’s flash manufacturing PMI for June and new home sales. Will they beat expectations like the nice existing home sales?
In our latest podcast we digest the dollar dove dive, update on Greece and preview next week’s events.
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