US durable goods orders rose by 1.1%. A rise of 0.5% was estimated. Core orders rose by 0.4%. They were expected to rise by 0.9%.
The good news is that orders are rising, and that the headline number was an upside surprise after 4 consecutive disappointments. The bad news is that core orders disappointed and that the overall picture of the US economy is still mediocre.
USD/JPY was struggling to recapture the 79.70 line before the release. EUR/USD was sliding in the 1.2440 – 1.2520 range before the release. USD/JPY is stable after the release and EUR/USD is correcting its small falls.
Amid all the disappointing US figures of late, durable goods orders has been one of the worst: 4 consecutive misses of expectations have been recorded in the headline number and 2 in the core orders figure.
Orders remained unchanged in April, and core orders fell by 0.9%. Some initial reads were eventually revised to the upside, but they still were below the early predictions.
The current bright side in the US economy is the housing sector: new home sales, building permits and even house prices are up – exceeding expectations and showing clear signs of bottoming out.
Pending home sales are next – will be released at 14:00 GMT.