- Gennadiy Goldberg, U.S. strategist at TD Securities USA LLC
It seems that the EUR/USD currency pair found a strong support around a recent low at 1.3431, as even despite stronger-than-expected data from the United States was not able to provide a massive boost to the most traded currency pair. After touching a recent low immediately after the release of the data, the pair bounced back and was trading around 1.3440.
The number of orders for long-lasting goods is a good proxy of manufacturers' confidence about the future performance of the domestic economy. Moreover, rising purchase orders is pointing at stronger activity in the coming months, as companies will increase activity to meet the demand. Bookings for non-military capital goods stripping out aircraft inched higher 1.4% following a 1.2% drop in the previous month that was downwardly revised from a 0.7% gain. The Commerce Department also said that demand for all durable goods climbed 0.7% in June. Despite the fact the indicator is highly volatile, stronger-than-expected reading suggests GDP will strengthen as well, meaning the Fed will have a support in economic data to start raising interest rates. The U.S. economy will probably expand at a 3.1% annualized pace this quarter, after a 3.3% growth in the second quarter. These figures come after a 2.9% contraction in the first three months, the worst performance since the depth of the recession.
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