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

US durable goods orders overview

Tuesday's US economic docket highlights the release of Durable Goods Orders data for the month of June. The US Census Bureau will publish the monthly report at 12:30 GMT. The headline orders are expected to rise 2.1% during the reported month, down from the 2.3% growth recorded in May. Orders excluding transportation items, which tend to have a broader impact, are anticipated to have increased by 0.8% in June as against the 0.3% rise in the previous month.

How could it affect EUR/USD?

Ahead of the key release, the risk-off impulse in the markets drove some haven flows towards the US dollar and exerted some pressure on the EUR/USD pair. A stronger report might provide an additional boost to the greenback and drag the pair back closer to the three-and-half-month lows touched last week.

Conversely, a softer reading will further fuel worries that the fast-spreading Delta variant of the coronavirus could derail the global economic recovery. This, in turn, should act as a tailwind for the safe-haven USD, suggesting that the path of least resistance for the major remains to the downside.

That said, any knee-jerk market reaction is more likely to be short-lived and reversed quickly as investors might refrain from placing aggressive bets ahead of the FOMC policy decision on Wednesday. Nevertheless, the data might still provide some meaningful impetus to the pair and allow traders to grab some short-term opportunities.

Meanwhile, Yohay Elam, FXStreet's own analyst, provided a brief technical outlook: “Euro/dollar has slipped below the 50 Simple Moving Average on the four-hour chart after failing to recapture the 100 SMA. Moreover, momentum has turned back to the downside after several sessions on the upside. Bears are looking stronger.”

Yohay also offered important technical levels to trade the major: “Support awaits at the July low of 1.1750, followed by 1.1717 and 1.17, levels last seen early in the year. Resistance is at 1.1812, the daily high, followed by1.1830, 1.1850 and 1.1880, which all capped recovery attempts.”

Key Notes

  •   Durable Goods Orders Preview: Why expectations could be too high, data useful for trading GDP

  •   EUR/USD Forecast: Covid, US data and Fed tensions are set to keep bears in control

  •   EUR/USD Price Analysis: Further downside likely below 1.1830

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD: Focus on two-month-old support near 1.1750

EUR/USD remains pressured around three-week lows, consolidate the biggest daily fall in a month. Firmer Momentum back-up to the south-run, 50-DMA break favor sellers.


GBP/USD: Bulls and bears will battle this out near the 61.8% golden ratio

The GBP/USD price has corrected 50% of the hourly bearish impulse. The bulls have been chipping away as profits are taken with bears moving aside one by one. This has resulted in a slow decelerating correction from which could attract sellers again. 


EUR/USD: Focus on two-month-old support near 1.1750

EUR/USD remains pressured around three-week lows, consolidate the biggest daily fall in a month. Firmer Momentum back-up to the south-run, 50-DMA break favor sellers.


Ethereum Classic Price Prediction: ETC coils up for 40% upswing

Ethereum Classic price shows choppy action as it approaches the lower trendline of an ascending parallel channel. The $52.92 support floor is likely to be tagged before a 40% upswing originates.

Read more

US Michigan Consumer Sentiment Preview: Markets will have to look hard for positive signs

Consumer outlook expected to rebound to 72.2 in September. August’s 70.2 was the lowest since December 2011. Inflation and Delta variant wearing on US optimism. Markets face negative dollar risk from fading consumer optimism.

Read more