The report showing that the US factory orders marked the buggiest drop in almost three years in July contributed to the jump in EUR/USD. The Euro accelerated gains against the Greenback, edging 20 base points higher to the 1.1908 mark.
The Commerce Department stated that orders for US-made goods tumbled 3.3% in July, as the demand for transportation equipment slumped in the same period. However, capital goods orders were stronger than the prior report showed, suggesting a solid business spending in the early Q3. Moreover, an increase in production could be fuelled by expected rise in demand for motor vehicles, as residents in storm-battered Texas aim to replace damaged cars.
| Historical Data Table: US Factory Orders | |||||
| Date | 04.06.2017 | 05.06.2017 | 05.07.2017 | 03.08.2017 | 05.09.2017 |
| Actual | 0.20% | -0.20% | -0.80% | 3.00% | -3.30% |
| Forecast | 0.60% | -0.20% | -0.50% | 2.90% | -3.30% |
| Initial Reaction on Main Pairs | |||||
| Open Price | Close Price | % Change | |||
| AUD/USD | 0.80113 | 0.80214 | 0.13% | ||
| EUR/USD | 1.18886 | 1.19083 | 0.17% | ||
| USD/JPY | 109.255 | 109.152 | -0.09% | ||
| NZD/USD | 0.72298 | 0.72406 | 0.15% | ||