This afternoon’s early reports from the US regarding its durable goods orders for June gave some cause for consternation. On the one hand, both the nominal and core reports underlined growth from the previous month’s steep declines. On the other hand, the more impactful core report came in below forecasts.
While it is true that the nominal report showed growth in durable goods orders well beyond forecasts (a hearty 1.9% growth), the core report, which factors out the more volatile transportation items, revealed stagnation in other sectors of durable goods orders. The murky growth of only 0.6%, below the 1.0% expected, furrowed more than a couple eyebrows as traders assessed the level of risk appetite in the American markets.
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