US durable goods orders dropped 2% as expected, but with a downwards revision: they rose only 1.9% in the previous month instead of 2.2% originally reported. Core orders remained flat and did not rise as predicted. US jobless claims come out better than expected with 267K.
The reaction is an extension of the risk off sentiment: the euro and the yen are on the rise against the dollar while commodity currencies extend their fall. The Canadian dollar stands out with a fall that is wider than the others.
More: USD/JPY: Trading the US Final GDP
US durable goods orders were expected to drop by 2% in August after rising by 2.2% in July (before revisions). Core orders carried expectations for a rise of +0.1% after +0.4%. Jobless claims were predicted to rise from 264K to 271K.
The move was preceded by a “risk off” atmosphere, in which the yen and the euro led the pack, which was the followed by the dollar and finally by the pound and commodity currencies.
- EUR/USD traded at a high of 1.1240 and 1.1250 after.
- GBP/USD was down around 1.52 and 1.5220 after.
- USD/JPY dropped to 1.1950 and 1.1940 after.
- USD/CAD hit 1.3380 and is challenging 1.34 after.
- AUD/USD at 0.6960 and is stable after.
- NZD/USD at 0.63 and is stable after.
As we explained in the summary of the daily show, the focus shifts to safe havens after the commodity crash. We later have new home sales and finally a speech by Janet Yellen.
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