USD/JPY: US Durable Goods Orders m/m

The initial reaction to the release of the Census Bureau's report on the US durable goods orders was limited, as markets were focusing on the underlying data rather than the jump in the headline measure, which left the USD/JPY currency pair holding below the 111.40 mark. The report showed that total orders for durable goods in the US surged 6.5% over the course of June compared with a 3.2% uptick expected by economists, while the core gauge posted a 0.2% gain, missing analysts' forecasts for a 0.4% climb in the reported month. Overall, the data released yesterday suggested a steady underlying improvement in conditions despite the fact that the surge was mainly driven by a sharp rise in aircraft orders, which sent capital goods orders soar 19% over the month of June.