The headline US durable goods orders report was stronger than expected
SGM-FX Tue 28 Feb 2017
The headline US durable goods orders report was stronger than expected with a 1.8% increase for January, but the figure was inflated by aircraft orders and underlying sales declined 0.2% on the month following a revised 0.9% gain for January. Pending home sales data was weaker than expected with a 2.8% decline for January which pushed annual growth to 12- month lows. The Euro rallied to highs around 1.0630 after the US data as the dollar faded slightly.
Dallas Fed President Kaplan stated that the Fed should increase interest rates in the near future which helped boost speculation of a rate hike in March with futures markets indicating the chances of a move had increased to around 50%. The shift helped underpin the dollar and the Euro retreated below 1.0600 and held just below this level on Tuesday.
Related Insights
Morning Brief – Calling the bluff
Charles Porter
Thu 15 Dec 2022
Calling the bluff As expected, the Federal Reserve raised interest rates in the United States yesterday evening by a further 50 basis points. As a result of this policy adjustment, immediate target policy levels now stand at 4.25-4.5%. As also expected, the Fed pushed back fairly hard on the idea that it is ready to […]
Morning Brief – Pencil to pen
Charles Porter
Tue 13 Dec 2022
Pencil to pen As with any year ahead, 2023 has been fervently speculated over by market participants. Whilst forecasts for the forthcoming year take great priority every year, 2023 has perhaps the most divergent set of forecasts between analysts and institutions on recent record. Across asset classes and between institutions the core themes expected to […]
Morning Brief – False Illusions
Charles Porter
Tue 6 Dec 2022
False Illusions On Friday last week markets had got very exuberant over comments made by the Federal Reserve Chair the day prior. As a result of the interpretation of those comments, the US Dollar had dropped several cents to trade at its recent lows. There was a narrative that was being pieced together and justified […]
