EUR/USD sticks to modest gains, still struggling to move beyond 1.1200 mark post-US data
| • The USD held on the defensive after weaker than expected US durable goods orders.
• The downward revision of the previous month’s figures added to the disappointment.
The EUR/USD pair held on to its mildly positive tone through the early North-American session, with bulls still awaiting a sustained move beyond the 1.1200 round figure mark post-US macro data.
The US Dollar added to its overnight losses and retreated farther from two-year tops following the disappointing release of US durable goods orders, showing a sharp decline of 2.1% in April as compared to a drop of 2.0% anticipated.
Meanwhile, core durable goods orders - excluding transportation items and which tend to have a broader impact than the volatile headline figures, also fell short of consensus estimates and came in to show a flat reading on a monthly basis.
Adding to the disappointment, the previous month's readings were also revised lower, which against the backdrop of Thursday's dismal data - indicating manufacturing activity in the US stood at the slowest pace in almost a decade, did little to inspire the USD bulls.
Despite the offered tone surrounding the greenback, the uptick lacked any strong bullish conviction as investors still seemed reluctant to place any aggressive bullish bets amid worries about a sharp economic slowdown in the Euro-zone.
Technical levels to watch
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