Durable Goods Orders are expected to follow retail sales higher. Equities and currencies have priced a strengthening economic recovery as it would be illogical to expect that the durable goods, a component of retail spending, will perform differently, FXStreet’s analyst Joseph Trevisani informs.
Key quotes
“New orders for durable goods are expected to rise 10.6% in May after collapsing 17.7% in April as most of the country entered mandatory quarantine. Orders outside of the transportation sector are predicted to climb 2.5% following the 7.7% drop in April. Non-defense capital goods ex-aircraft, the proxy for business spending, is forecast to add 1% after the April 6.1% decrease.”
“Markets are waiting for proof that the recovery they have priced in is well under way. Consumers have cooperated and there is every reason to expect the large ticket items of durable goods to perform as well as overall retail sales. Equities will applaud and the dollar will have yet more preparation for its eventual rise.”
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