HFM information and reviews
HFM
96%
Octa information and reviews
Octa
94%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
Vantage information and reviews
Vantage
85%

When are the US durable goods orders and how could they affect EUR/USD?


27 September 2022

Tuesday's US economic docket highlights the release of Durable Goods Orders data for August. The US Census Bureau will publish the monthly report at 12:30 GMT and is expected to show that headline orders declined for the second straight month, by 0.4%. Orders excluding transportation items, which tend to have a broader impact, are anticipated to grow by a modest 0.2% in August, matching the previous month's reading.

How could it affect EUR/USD?

Ahead of the key data, retreating US Treasury bond yields, along with the risk-on impulse, prompt some profit-taking around the safe-haven US dollar. That said, growing acceptance that the Federal Reserve will tighten its monetary policy at a faster pace to tame inflation continues to act as a tailwind for the greenback. A stronger-than-expected report will reaffirm hawkish Fed expectations and lift the US bond yields higher, along with the USD.

Conversely, a weaker report will further fuel concerns about a global economic downturn and weigh on investors' sentiment, offering some support to the greenback's safe-haven status. The fundamental backdrop remains tilted firmly in favour of the USD bulls and suggests that the path of least resistance for the EUR/USD pair is to the downside.

Eren Sengezer, Editor at FXStreet outlines important technical levels to trade the major: “The near-term technical outlook shows that EUR/USD is still technically oversold despite the rebound witnessed during the Asian trading hours. In case 0.9600 holds as the end-point of the one-week-old downtrend, the pair needs to flip 0.9650 (descending trend line) into support before targeting 0.9700 (Fibonacci 23.6% retracement level, 20-period SMA).” “On the downside, 0.9600 (psychological level, static level) forms initial support before 0.9550 (September 26 low) and 0.9500 (psychological level),” Eren adds further.

Key Notes

About US durable goods orders

The Durable Goods Orders, released by the US Census Bureau, measures the cost of orders received by manufacturers for durable goods, which means goods planned to last for three years or more, such as motor vehicles and appliances. As those durable products often involve large investments they are sensitive to the US economic situation. The final figure shows the state of US production activity. Generally speaking, a high reading is bullish for the USD.

#source

Share: Tweet this or Share on Facebook


Related

US Dollar Strengthens Amid Inflation Data
US Dollar Strengthens Amid Inflation Data

As of Wednesday, the EUR/USD pair is hovering near 1.0925 after experiencing a volatile session, with expectations for a more subdued week ahead.

13 Mar 2024

Exploring EURUSD's Prospects: Is It Poised for an Uptrend Resurgence Above the Ascending Line?
Exploring EURUSD's Prospects: Is It Poised for an Uptrend Resurgence Above the Ascending Line?

EURUSD Embarks on a Rebound Off the 200-day SMA, Yet Clings Below the Ascending Trend Line: The EURUSD currency pair has recently experienced a resurgence, with notable price action centered around...

25 Jan 2024

EUR/USD Outlook: Insights from Davos and Federal Reserve Speeches
EUR/USD Outlook: Insights from Davos and Federal Reserve Speeches

Recent insights from European Central Bank (ECB) officials, including Gediminas Šimkus and Madis Müller, indicate a cautious approach to immediate rate cuts, hinting at a potential move in the summer...

17 Jan 2024

Will the US NFP Report Resurrect the Ailing Dollar?
Will the US NFP Report Resurrect the Ailing Dollar?

In January, the Euro area witnessed a modest improvement in investor sentiment, as indicated by the Sentix Investor Confidence Index, which rose slightly to -15.8 from -16.8 in December...

8 Jan 2024

EUR/USD Price Outlook: Awaiting US Employment Data Amidst Rising Pressure
EUR/USD Price Outlook: Awaiting US Employment Data Amidst Rising Pressure

The EUR/USD currency pair has been experiencing downward pressure, notably retreating from a recent high near 1.0950, as market sentiment shifts to a cautious stance in anticipation...

5 Jan 2024

EUR/USD Under Pressure Following German Employment Figures, Awaiting US Economic Updates
EUR/USD Under Pressure Following German Employment Figures, Awaiting US Economic Updates

The EUR/USD currency pair has seen a contraction of its earlier gains, now approaching the 1.0940 level, in the wake of the latest employment data from Germany. This move comes amidst a broader context...

3 Jan 2024


MultiBank Group information and reviews
MultiBank Group
84%
XM information and reviews
XM
82%
FP Markets information and reviews
FP Markets
81%
FXTM information and reviews
FXTM
80%
AMarkets information and reviews
AMarkets
79%
BlackBull information and reviews
BlackBull
78%

© 2006-2024 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.