When are the US durable goods orders and how could they affect EUR/USD?

US durable goods orders overview

Wednesday's US economic docket highlights the release of durable goods orders data for November. The US Census Bureau will publish the monthly report at 13:30 GMT. The headline orders are expected to rise by 0.6% during the reported month, down from the previous month's 1.3% increase. Core durable goods orders, which exclude transportation items and tend to have a broader impact than the volatile headline figures, are forecast to record a growth of 0.4% in November as against 1.3% previous.

According to Yohay Elam, FXStreet's own analyst: “There are two reasons to expect a better outcome rather than a weaker one. First, core durables beat estimates in seven out of eight of the last releases, and met expectations in the sole exception. The consensus has been too downbeat, opening the door for another upside surprise. The second reason is that durables reflect long-term investment – and that is based on expectations rather than the current situation. On November 9, Pfizer and BioNTech announced a high efficacy rate for their COVID-19 vaccine. On the following week, Moderna followed suit with a similar outcome. Such upbeat developments may have pushed businesses to invest for the long-term, seeing the light at the end of the tunnel.”

How could it affect EUR/USD?

Ahead of the important release, the USD was back under selling pressure and allowed the EUR/USD pair to recover a part of the overnight losses. Weaker-than-expected readings might be enough to exert some additional downward pressure on the already weaker greenback and push the pair back closer to YTD tops.

Meanwhile, Yohay Elam offered a brief technical outlook and important levels to trade the major: “Euro/dollar is struggling to hold onto the 50 Simple Moving Average and is suffering from downside momentum. On the other hand, the currency pair trades above the 100 and 200 SMAs. Some resistance awaits at 1.22, the daily high, followed by 1.2250 and then by the 2020 peak of 1.2272. Support awaits at 1.2150, the daily low, followed by 1.2130 and 1.21.”

Key Notes

  •   Durable Goods Orders Preview: Long-term investment likely got a shot in the arm, dollar-positive

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About US durable goods orders

The Durable Goods Orders, released by the US Census Bureau, measures the cost of orders received by manufacturers for durable goods, which means goods planned to last for three years or more, such as motor vehicles and appliances. As those durable products often involve large investments they are sensitive to the US economic situation. The final figure shows the state of US production activity. Generally speaking, a high reading is bullish for the USD.