Yet another disappointing US release: durable goods orders fell 3.4% m/m in December. Core orders dropped 0.8%. Expectations were for rises in both. In addition, the drops came on top of downwards revisions to previous data: the headline figure was revised from -0.9% to -2.1%. This is really bad.
The US dollar is down on the publication which is set to weigh on GDP data.
Update: US CB consumer confidence leaps to 102.9 points, new homes sales rise to 481K – USD recovers
Update: The S&P/CS Composite-20 HPI also came in a bit below expectations, with 4.3% y/y, below 4.4% predicted and 4.5% seen in the previous month. This sends EUR/USD another leg higher to 1.1360. Resistance appears at 1.1373, which was the November 2003 low.
- EUR/USD is climbing up towards the highs of the day at 1.1333. The pair hit a triple top and broke higher.
- GBP/USD is all the way up to 1.5160, defying the unimpressive UK GDP data seen earlier.
- USD/JPY extends its fall to 117.50.
- USD/CAD is down to 1.2450. The loonie was hit hard recently and it is now ticking up.
- AUD/USD is at 0.7950 ahead of the Australian CPI data.
- NZD/USD is at 0.7450.
US durable goods orders were expected to rise 0.6% in December after a slide of 0.9% last month and core orders also carried expectations for the same kind of rise after a fall of 0.7% in November.
Before the publication, the dollar was on the back foot, with EUR/USD trading above 1.13, GBP/USD around 1.5140 and USD/JPY under 118.
Durable goods orders form part of the GDP report. The US publishes the first GDP estimate for Q4 on Friday.
Later on today, we have the S&P Case Shiller HPI, the flash services PMI from Markit and later on two more important figures: new home sales and CB Consumer Confidence.
More: EUR/USD set for parity at year end, 0.90 at end 2016 – collapse justified – ING
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