EUR/USD: US Factory Orders

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.