FOREX 3 minutes to read

Dollar disregards durable data

Summary:  The dollar couldn't hold its Durable Goods gains, but it remains the heavyweight among the FX majors.


Today's Durable Goods data didn’t get the job done. Traders looking for a fresh bout of lasting dollar strength were sadly disappointed even though March Durable Goods Orders rose 2.7%, well above forecasts for a 0.8% gain. The US Census Bureau said it was the fourth gain in five months. 

The US dollar inched higher in the immediate wake of the news but was unable to hang on the gains; as of 13:50 GMT, USD has lost ground against all the majors since the New York open. The 30,000 increase in the weekly jobless claims report tarnished the Durable Goods data and sparked a bout of profit-taking in FX.

As far as EURUSD goes, however, this morning’s post-data rally is merely a minor blip in the steep downtrend that began last week with the break below 1.1290. Soft Eurozone data and an uber-dovish European Central Bank stand in stark contrast to reasonably robust US data and a dovishly neutral Federal Reserve, keeping the focus on the downside.

USDCAD continues to ignore oil price swings and remains underpinned by the Bank of Canada’s latest dovish outlook.

Wall Street is trading on a mixed note. The DJIA and S&P 500 are down while the NASDAQ is slightly higher. Bill Gates' former company joined the trillion-dollar market cap club, albeit briefly. Microsoft (MSFT: Nasdaq) shares touched $131.37 after the company reported earnings of $1.14/share compared to expectations of $1.00. Prices have since dropped but are still up 3.90% from yesterday’s close.

The DJIA was weighed down by a 10.07% plunge in the shares of 3M (MMM: NYSE), where quarterly earnings were below forecasts. The company didn’t just cut its 2019 earnings forecast but also announced 2,000 employees would be laid off.
EURUSD (hourly, source: Saxo Bank)
Disclaimer

Saxo Capital Markets (Australia) Pty Ltd prepares and distributes information/research produced within the Saxo Bank Group for informational purposes only. In addition to the disclaimer below, if any general advice is provided, such advice does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of trading any financial instrument as trading can result in losses that exceed your initial investment. Please refer to our Analysis Disclaimer, and our Combined Financial Services Guide and Product Disclosure Statement. All legal documentation and disclaimers can be found at https://www.home.saxo/en-au/legal/.

The Saxo Bank Group entities each provide execution-only service. Access and use of Saxo News & Research and any Saxo Bank Group website are subject to (i) the Terms of Use; (ii) the full Disclaimer; and (iii) the Risk Warning in addition (where relevant) to the terms governing the use of the website of a member of the Saxo Bank Group.

Saxo News & Research is provided for informational purposes, does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. No Saxo Bank Group entity shall be liable for any losses that you may sustain as a result of any investment decision made in reliance on information on Saxo News & Research.

To the extent that any content is construed as investment research, such content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication.

Please read our disclaimers:
- Full Disclaimer (https://www.home.saxo/en-au/legal/disclaimer/saxo-disclaimer)
- Analysis Disclaimer (https://www.home.saxo/en-au/legal/analysis-disclaimer/saxo-analysis-disclaimer)
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)