There hasn’t been much going on in financial markets to start the new week but calmer tones are prevailing and that should provide some comfort for risk trades – at least for the time being after the US durable goods orders report was released a while ago. Here’s a look at how equities and bonds are faring for now:

• Eurostoxx +1.1%
• Germany DAX +1.2%
• France CAC 40 +0.5%
• UK FTSE +0.8%
• S&P 500 futures +0.5%
• Nasdaq futures +0.6%
• Dow futures +0.4%
• 10-year German bund yields +7 bps to 1.51%
• 10-year Italian bond yields +7 bps to 3.62%
• 2-year Treasury yields +1.5 bps to 3.07%
• 10-year Treasury yields +4 bps to 3.16%

EUR/USD H4 Chart – MAs Keep Providing Resistance

Stochastic looks overbought on the H4 chart

US May Durable Goods Orders Report

• US May durable goods orders +0.7% vs +0.1% expected
• Durable goods orders +0.7% vs. +0.1% expected. Prior month +0.5% (revised to +0.4%)
• Nondefense capital goods orders ex-air +0.5% vs. +0.3% expected. Prior +0.3%
• Ex defense +0.6% vs. -0.5% expected. Prior +0.3% (revised to +0.2%)
• Ex transportation +0.7% vs. +0.3% expected. Prior +0.3% (revised to +0.2%)
• Unfilled orders +0.3%, up 21 consecutive months

Durable goods orders have risen in 7 of the past 8 months. This will offer somewhat of a relief on growth worries but could easily swing the worries back to inflation.

EUR/USD Live Chart