Better than expected: headline orders rise by 0.7% and core orders by 0.8%. Durable goods orders were expected to to advance by 0.4% in June after a drop of 0.9% in May. Core durable goods orders were predicted to rise by 0.6% after remaining flat in May. By another measure, non-defense no air, we have a rise of 1.4%, around triple the early expectations. All in all, the numbers are positive and imply a stronger GDP read in Q2 2014.
The US dollar was on the move before the publication, with EUR/USD recording new lows at 1.3430, GBP/USD at 1.6980 and USD/JPY edging closer to 102. The US dollar is actually sliding on the data. It looks like a “buy the rumor, sell the fact” reaction.– more coming —
US data has been mixed earlier in the week, but the excellent drop in jobless claims to an 8 year low of 284K took over bad news from new home sales or the mediocre inflation numbers and the US dollar emerged as a winner.
This was the last major event of the week. Next week we have a triplet of top tier events in the US, and the rise in volatility could even accelerate.
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