Remaining Short on EUR/USD, As US Durable Goods Raise for the 7th Month

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