Saturday, January 16

US Durable Goods Shine – USD Wallows at Lows

EURUSD, H1

US Durable Goods Orders rose 7.3% in June after a 15.1% (was 15.7%) bounce in May (second highest on record) following the -18.3% April plunge. Transportation orders remained supportive, climbing 20.0% after the 78.9% (was 82.0%) surge in May, correcting from the -48.9% April drop. Excluding transportation, orders were up 3.3% from 3.6% (was 3.7%), but missed expectations at 3.5%. Nondefense capital goods orders excluding aircraft increased 3.3% from the 1.6% May gain. Shipments jumped 14.9% from the prior 4.2% (was 4.4%) rise. Nondefense capital goods shipments excluding aircraft climbed 3.4% from 1.6% (was 1.5%) previously. Inventories edged up 0.1% from unchanged (was 0.1%). The inventory-shipment ratio dropped to 1.87 from 2.15. Overall a pretty solid report.

The Dollar ignored the bit better than consensus  durable goods orders. EURUSD sits near 1.1750, just under trend highs (January 2018) of 1.1764 seen earlier, while USDJPY idles near 105.40. News that President Trump’s National Security Advisor Robert O’Brien has tested positive for the coronavirus also adds pressure to the USD today.

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