
Dismal Philly Fed survey spooks US markets

Michael O’Neill
FX Trader, Loonieviews.net
Summary: December's US Durable Goods print was lukewarm, but the latest jobless claims data sounded a positive note. Into today's New York bell, however, it seems as though a dismal miss from the Philadelphia Fed Manufacturing Survey was the release that moved sentiment lower.
The picture was a little different on the equities front, however, as the weaker than expected US figures snapped a nascent rally on Wall Street. Equity futures pointed to a positive open in early New York trading, but sentiment turned negative after the data dump. It is still very early in the session, though, and the declines are modest.
December Durable Goods Orders were lukewarm. The headline increase of 1.2% was better than the upwardly revised November result of 1.0% but below forecasts for a 1.5% gain. It is the second consecutive increase but still not enough to recover from October's 4.3% plunge. Excluding transportation, Durable Goods Orders rose 0.1%. (forecast 0.3%, month-on-month).
USDCAD traders would be wise to take note as China is furious with Canada over its arrest of Huawei CFO Meng Wanshou.
Eurozone trade issues are sure to cause a kerfuffle as there are reports that President Trump has what he needs to impose tariffs on the import of EU cars. A “no-deal Brexit is another issue. The risk of GBPUSD instability could trigger a massive shift into risk aversion trades, and so could escalating Russia/US tensions over missile deployments.
Latest Market Insights
Disclaimer
The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research 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. To the extent that any content is construed as investment research, you must note and accept that the 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 under relevant laws.
Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-gb/legal/disclaimer/saxo-disclaimer)