US durable goods orders overview
Friday's US economic docket highlights the release of durable goods orders data for the month of April. The US Census Bureau is scheduled to release the monthly report at 12:30 GMT, with consensus estimates pointing to a sharp decline of 2.0% during the reported month as against a solid growth of 2.8% recorded in the previous month. Excluding transportation items - core durable goods orders, which tend to have a broader impact than the volatile headline figures are anticipated to rise a modest 0.2% in April, matching the previous reading.
As Analysts at TD Securities explain: “A large decline in the nondefense aircraft segment (driven by Boeing woes) and a drop in vehicles orders are likely to drag the headline measure lower. We also pencil in a -0.4% m/m retreat in durable goods ex-transportation and a larger -0.8% slide in core capex orders.”
Deviation impact on EUR/USD
Readers can find FX Street's proprietary deviation impact map of the event below. As observed, the reaction is likely to be in the range of 20-25 pips during the first 15-minutes in case of a deviation from +0.36 to -0.51 and could extend up to 51-55 pips in the following 4-hours.
EUR/USD important levels to watch
Yohay Elam, FXStreet's own Analyst offers some important technical levels ahead of the important release: “Resistance awaits at 1.1225 that separated ranges in mid-May, capping the currency pair last week. The next line to watch is 1.1250 that held it down earlier in the month, and the most substantial level is 1.1265, a double top. 1.1325 is next.”
“Support awaits at 1.1190 that was a resistance line early this week. 1.1165 provided support in mid-May and the new 2019 low of 1.1107 is the next level to watch,” he added further.
About US durable goods orders
The Durable Goods Orders, released by the US Census Bureau, measures the cost of orders received by manufacturers for durable goods, which means goods planned to last for three years or more, such as motor vehicles and appliances. As those durable products often involve large investments they are sensitive to the US economic situation. The final figure shows the state of US production activity. Generally speaking, a high reading is bullish for the USD.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.