Today it’s all bad news from the US: Q1 GDP was revised down to no less than a contraction of 2.9% (annualized).
Durable goods orders fell by 1% and core orders down by 0.1%. Expectations were low: a revision from a contraction of 1% to as low as 2% was expected for the first quarter of 2014. Weather was the main culprit. Durable goods orders were predicted to tick down by 0.1% for May while core orders carried expectations for +0.3%.
Before the publications, EUR/USD traded around 1.3615, GBP/USD was around 1.6960, and USD/JPY was around 101.90. The dollar is falling, with EURUSD rising towards 1.3640, GBP/USD to 1.6990 and USD/JPY down to 101.70
Analysis: Silver lining in terrible US data prevents range breaks in EUR, GBP, CAD
Update: GBP/USD flirts with 1.70, EUR/USD is battling resistance at 1.3650.
More reactions:
- AUD/USD is recovering as well, but it is unable to tackle the round figure of 0.94.
- NZD/USD recaptures the 0.87 level after bottoming out at 0.8660 earlier in the day.
- USD/CAD continues trading in a perfect range, and is now dropping to 1.0720, just above the bottom of the range at 1.0715.
Personal consumption was revised down to 1.0% from 3.1% reported beforehand. Fixed investment is -1.8%. GDP sales is now a negative -1.8% contrary to a rise of 0.6% originally reported. The final GDP Price Index was not revised at 1.3%.
April’s April durable goods orders was revised up to 0.8%. The only silver lining is durable gods orders ex-defense, ex-air which rose by 0.7% contrary to 0.5% expected.
Tuesday and Monday’s data was much better with both existing and new home sales beating expectations.
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