Forex News – Dollar lifted after strong US durable goods orders
June 25, 2013 1:51 pm
Strong U.S. economic data released in early New York trading on Tuesday helped the dollar rebound from the prior two sessions’ losses.
Durable goods orders in May beat forecasts to rise 3.6 percent from the previous month’s 3.5 percent. The consensus estimates had been for headline durables orders to rise 3.0 percent.
Meanwhile, core durable goods orders excluding transportation were also up 0.7 percent despite estimates for it to remain flat at zero percent.
Other positive data showed prices of U.S. single-family homes in April posting the biggest annual gain in seven years.
The S&P/Case Shiller composite index of 20 metropolitan regions in the U.S. gained 1.7 percent on a seasonally adjusted basis, beating estimates for 1.2 percent.
The solid U.S. data stoked expectations of Fed tapering of stimulus and sent the dollar higher. In recent session there were concerns that the U.S. economic recovery was still fragile and that Fed may end its bond purchase program too soon. However today’s data may give optimism that recovery is gaining momentum.
EURUSD dropped after the data to $1.3082 from $1.3142. USDJPY rose to 97.75 from 97.37 yen.
Strong U.S. economic data released in early New York trading on Tuesday helped the dollar rebound from the prior two sessions’ losses.
Durable goods orders in May beat forecasts to rise 3.6 percent from the previous month’s 3.5 percent. The consensus estimates had been for headline durables orders to rise 3.0 percent.
Meanwhile, core durable goods orders excluding transportation were also up 0.7 percent despite estimates for it to remain flat at zero percent.
Other positive data showed prices of U.S. single-family homes in April posting the biggest annual gain in seven years.
The S&P/Case Shiller composite index of 20 metropolitan regions in the U.S. gained 1.7 percent on a seasonally adjusted basis, beating estimates for 1.2 percent.
The solid U.S. data stoked expectations of Fed tapering of stimulus and sent the dollar higher. In recent session there were concerns that the U.S. economic recovery was still fragile and that Fed may end its bond purchase program too soon. However today’s data may give optimism that recovery is gaining momentum.
EURUSD dropped after the data to $1.3082 from $1.3142. USDJPY rose to 97.75 from 97.37 yen.
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