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Analysts at TD Securities (TDS) offered a brief highlight of Tuesday trading action and preview of the upcoming US macro releases – durable goods and consumer confidence data.

Key quotes:

“Risk sentiment has stabilized somewhat overnight, but we think this will prove temporary. Virus contagion concerns are likely to remain a FX market driver for some time to come. We think tactical positioning favors a defensive playbook.”

“We forecast a 0.3% m/m decline in durable goods orders, largely explained by a retreat in the nondefense aircraft segment. The decline in the latter should offset a gain in ex-transportation orders, which we pencil in at +1.2% m/m.”

“Separately, the consensus is looking for a modest improvement in the Richmond Fed’s manufacturing index to -3 in Jan from -5 in Dec, which would be consistent with the gains in the regional indices published so far.”

“Lastly, we anticipate a decent increase in the Conference Board’s consumer confidence index, to 129.5 in Jan from 126.5 in Dec.”