EURUSD, H1
US durable goods orders dipped -0.1% in the Advance July report following the 0.8% ( gain in June and the 3.2% jump in May. This is only the second decline in orders over the last 15 months. Transportation orders declined -2.2% following the 1.4% prior gain and the 10.0% surge in May.
Excluding transportation, the Core orders edged up 0.7% from 0.6% (0.5%) previously. Nondefense capital goods orders excluding aircraft were unchanged after increasing 1.0% in June. Shipments climbed 2.2% from 1.6%. Nondefense capital goods shipments ex-aircraft also rose 1.0% from 0.6%. Inventories rose 0.6% from the prior 0.9% gain. The inventory-shipment ratio fell to 1.76 from 1.79. It was at a 2-year low of 1.74 in January and an all-time high of 2.39 in April of 2020 for a series extending back to 1992. Despite the headline decline, this is a pretty good report, especially considering all of the supply chain disruptions.
The Dollar was slightly higher following the durables report. The USD had been on a slightly higher path ahead of the data. USDJPY is near session highs just under the 110.00 mark, while EURUSD touched intraday lows of 1.1726, before recovering to 1.1740. The USDIndex holds over 93.00 at 93.05 and Equity futures are flat ahead of the US open, while yields remain slightly higher on the session.
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Stuart Cowell
Head Market Analyst
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