When are the US durable goods orders and how could they affect EUR/USD?

US durable goods orders overview

Friday's US economic docket highlights the release of durable goods orders data for August. The US Census Bureau will publish the monthly report at 12:30 GMT. The headline orders are expected to rise 1.5% during the reported month, marking a sharp deceleration from the previous month's 11.4%. Core durable goods orders, which exclude transportation items and tend to have a broader impact than the volatile headline figures, are forecast to increase 1.2% as against 2.6% previous. Non-defence capital goods orders (excluding aircraft and parts) - seen as a proxy for business investment - are anticipated to grow 0.1% versus July's 10.1% gain.

How could it affect EUR/USD?

A disappointing reading will add to market concerns that the second wave of coronavirus infection could derail the economic recovery. This, in turn, should continue to drive some haven flows towards the US dollar. Conversely, stronger-than-expected figures will be enough to provide an additional boost to the already stronger greenback. Nevertheless, the EUR/USD pair seems all set to prolong its recent bearish trajectory.

Meanwhile, Pablo Piovano, FXStreet's own Analyst provided a brief technical outlook to trade the major: “EUR/USD managed to gather some composure in the area of multi-week lows near 1.1630 on Thursday. The recently broken key contention area in the 1.1700 neighbourhood has now become the next target of significance if buyers regain the upper hand and push for a more serious bullish attempt. On the downside, and in the event of the resumption of the selling bias, recent lows near 1.1630 emerges as the initial, albeit interim, support zone. A deeper retracement to the relevant contention region around 1.15 (March tops) is still unfavoured.”

Key Notes

  •   US Durable Goods Orders August Preview: Duplicating the retail sales slowdown

  •   EUR/USD Price Forecast: Next upside target emerges at 1.1700

  •   EUR/USD recedes to daily lows in the 1.1640 area

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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

AUD/USD fuelled 0.2% by strong PMI Composite in early Asia

AUD is up on the day so far as early data gives the bulls a head start. Early Asia has been kind to Aussie bulls with the price of the currency extending its late New York gains with a robust Construction PMI report, solidly above the 50.0 expansion level, arriving at 54.2.


NZD/USD bullish bets above 0.6690 marked down by CPI miss

NZD/USD bulls have been stopped in their tracks by the miss in the CPI data. The US dollar found a lease of life on Wall Street, bulls encouraged by data. New Zealand's CPI was released in recent trade which has changed the bird's flight trajectory in early Asia.


Gold: Bears seeking a continuation below key daily support

Gold prices are back under pressure and below a critical trendline on the daily chart. The swing trading opportunities are caught up in the wash of volatility. A day trading strategy could offer an opportunity if price obeys market structure.

Gold News

2020 US Elections: The final presidential debate

The second and final presidential debate between Donald Trump and Joe Biden promises to be a political event of the first magnitude. Mr. Biden leads i

Read more

WTI bulls keep the fuell buring into Wall Street close

West Texas Intermediate crude oil is higher on the day, although has run into resistance and started to consolidate.

Oil News