- Orders of permanent goods in the US in August unexpectedly increased.
- The US dollar index remains over 98.00.
New orders for resistant goods in the US increased by $ 2.9%in August, ie $ 8.9 billion, to $ 312.1 billion, the US census reported on Thursday. This reading followed a 2.7% decline (revised from -2.8) recorded in July and was better than market expectations of -0.5%.
“With the exception of transport, new orders increased by 0.4%,” the press release read. “With the exception of defense, new orders increased by 1.9%. Transport facilities, also after two consecutive monthly drops, increased, $ 8.1 billion or $ 7.9% to $ 110.2 billion.”
Reaction of the market to American orders of durable goods
The US dollar (USD) collects strength according to positive data. During the press, the USD index has been traded at the highest level since the beginning of September at 98.10 and increased by 0.25%on the day.
The price of a dollar US today
The table below shows the percentage change in the US dollar (USD) against the main currencies. The US dollar was the strongest against the British pound.
| USD | Eur | GBP | Jy | CAD | Auditorium | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.25% | 0.41% | 0.16% | 0.06% | 0.28% | 0.24% | 0.35% | |
| Eur | -0.25% | 0.15% | -0.09% | -0,19% | 0.06% | -0.01% | 0.10% | |
| GBP | -0.41% | -0.15% | -0.20% | -0.34% | -0.11% | -0,13% | -0.02% | |
| Jy | -0,16% | 0.09% | 0.20% | -0,14% | 0.07% | 0.22% | 0.18% | |
| CAD | -0.06% | 0.19% | 0.34% | 0.14% | 0.25% | 0.21% | 0.33% | |
| Auditorium | -0.28% | -0.06% | 0.11% | -0.07% | -0.25% | 0.25% | 0.05% | |
| NZD | -0.24% | 0.00% | 0.13% | -0.22% | -0.21% | -0.25% | -0.15% | |
| CHF | -0.35% | -0.10% | 0.02% | -0.18% | -0,33% | -0.05% | 0.15% |
The heat map shows the percentage changes in the main currencies against each other. The basic currency is selected from the left column, while the currency of the menu is selected from the upper row. For example, if you select the US dollar from the left column and move along the horizontal line to the Japanese yen, the percentage change displayed in the box will represent USD (basic)/JPY (quote).
This part below was published as a preview of American orders of durable goods at 10:30 GMT.
Overview of US durable goods data
The United States (USA) Data on resistant goods for orders of durable goods for August should be released today at 12:30 GMT. The Office for the Census will show that new orders for durable goods have fallen for the third time in a row. However, the decline rate is expected to be slight to 0.5%, compared to 2.8% of contractions observed in July. Data on resistant goods of the order measure the costs of orders received by the manufacturer for permanent goods.
The costs of durable goods are affected by a change in the cost of work or raw materials or both. Theoretically increase the cost of discretion goods causes inflation and forces Federal reserve (Fed) will change Hawkish to the interest rate view. Alternatively reflect the cost of a decrease in durable goods reflect pressures on the cooling price that allow the Fed to turn to the policy insert rates.
How could US data on resistant goods affect EUR/USD?
EUR/USD He trades caution near 1,1750 during the European Sales meeting. The main couple of currencies will restore their journey on Wednesday after a two -day move to near 1.1820. The couple was under pressure because the US dollar (USD) trades firmly after the announcement of monetary policy Fed last week.
The main pair of currencies are traded near the 20 -day exponential gliding average (EMA), which is around 1.1744, suggesting that the short -term outlook is uncertain.
The 14-day relative force index (RSI) oscillates inside the range of 40,00-60,00, which points to the side trend.
Since the EUR/USD can increase towards a psychological level of 1.2000 if it breaks over a four -year maximum of around 1.1920. On the other hand, the September minimum will be around 1.1600 with a key support zone for a couple if the couple extends their disadvantage below 12 September at a minimum of 1.1700.
US DOLLAR FAQS
The US dollar (USD) is the official currency of the United States of America and “de facto” currency of a large number of other countries where it is in circulation beside local notes. It is the most traded currency in the world, which represents more than 88% of all global foreign exchange fluctuations, or on average $ 6.6 trillion in transactions daily, according to 2022. For most of its history, the US dollar was supported by gold until Bretton Woods in 1971, when the gold standard disappeared.
The most important single factor that affects the value of the US dollar is the monetary policy that is formed by a federal reserve (Fed). The Fed has two mandates: to achieve price stability (control inflation) and support full job. Its primary tool to achieve these two goals is to adjust the interest rates. When prices are rising too fast and inflation is above 2% Fed’s goal, the Fed will increase rates, which helps USD. When inflation falls below 2% or the unemployment rate is too high, the Fed can reduce interest rates that weigh green.
In extreme situations, the federal reserve system can also print more dollars and enable quantitative release (QE). QE is a process by which the Fed significantly increases the flow of the loan in the stuck financial system. This is a non -standard political measure used when the credit has dried up because banks do not borrow each other (for fear of extending the default). This is the last possibility where the interest rates are unlikely to achieve the necessary result. The Fed’s weapon was an election in the fight against the credit crisis that occurred during the major financial crisis in 2008. This includes the printing of more dollars and their use to buy US government bonds mainly from financial institutions. QE usually leads to a weaker US dollar.
Quantitative tightening (QT) is a reverse process where the federal reserve system stops buying bonds from financial institutions and does not represent the principal of the bonds it brings in new purchases. It is usually positive for the US dollar.
