Core Durable Goods Orders disappoint – USD shrugs it off 0

Less than convincing data from the US: durable goods orders fell by 2.8%, slightly better than expected but on top of a downward revision. Worse off, core orders dropped by 1%, far worse than 0.2% expected and also with a downward revision. Jobless claims beat with 265K and with a small revision to 259K for the previous week, but this is not a real silver lining.
The US dollar dipped a bit but never went too far.
This leaves a sour taste in the mouths of traders going on holiday tomorrow.
Durable goods orders were expected to slide in February after the previous figures showed a big recovery. The Fed described investment as “soft” and this comes to a test with the core figures.
Currencies were mixed towards the publication, with the US dollar retreating off the highs.

The Data

  • Jobless claims: previous 265K, expected: 268K, actual:
  • Durable goods orders: prev. +4.7%, exp. -2.9%, actual:
  • Core durable goods orders: prev. 1.7%, exp. -0.2%, actual:

Currencies

  • EUR/USD traded around 1.1160, struggling to rise from the lows.
  • GBP/USD was recovering from support at 1.4050 and traded around 1.4140, enjoying strong UK retail sales.
  • USD/JPY traded around 112.60, sliding from resistance at the round level of 113.
  • USD/CAD was around 1.3234. The C$ was hit by a fresh fall in oil prices.
  • AUD/USD was around 0.7510.
  • NZD/USD was just under the round 0.67 level.

Background

The Fed went to the dovish end in the statement last week, but FOMC members that spoke up this week talked about a possible hike in April, something that still remains a remote option. Nevertheless, odds for a hike in June have shortened.
Tomorrow, on Good Friday, we’ll have the third and final read for US GDP for Q4. While the data may be somewhat stale, it will be watched. See how to trade the GDP with EUR/USD.:

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