Durable goods orders dropped by a huge 5.7%, almost double the expectations for a drop of 2.9%.. Also the core figure fell below expectations: a drop of 1.4%, worse than a rise of 0.5% that was expected. In addition, the figure for the previous month was revised to the downside: a drop of 0.7% instead of 0.5% originally reported.
These figures make the task for USD/JPY to conquer 100 much harder.
While the numbers tend to be volatile, a worse than expected figure and downwards revisions can only be interpreted as bad news. The figure joins weaker than expected jobs, retail sales and PMIs.
USD/JPY is retreating after another move closer to the magical 100 line that is so hard to encounter.
The US is not alone with reporting weak numbers. Also Germany had its share, with a worse than expected IFO figure joining weak PMIs. EUR/USD continues struggling with the 1.30 line.
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