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EUR/USD trading signal - U.S. durable goods orders - 27 Jun 2018

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Signal details
Entry Price: 
1.1680
Close Price: 
1.1552
Direction: 
Low
Expiry Time: 
21:00 GMT
Result: 
ITM
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The U.S. monthly durable goods orders data will be released today at 13:30 GMT. According to the economists polled, durable goods orders are expected to fall 0.9% on the month in May. This follows a 1.6% decline that was registered the month before.

Core durable goods orders are however expected to rise 0.5% on the month, but it is a slower pace of gains compared to the 0.9% increase registered in April.

The rather weak outlook on expectations for durable goods comes amid the ongoing trade war uncertainty which has hit various industries. Although there hasn't been any direct impact yet, the weak sentiment is expected to hit new business orders.

This is expected to reflect in the overall durable goods orders figures. The data covers the month May which saw the U.S. administration's steel and aluminum tariffs going into effect, and also includes some of the tariffs levied by China on the U.S. goods as well.

While the durable goods orders mostly covers items such as electronics and most importantly aircraft sales, the data could potentially come out mixed. Most of the industries covered in the durable goods sector are relatively safe from the trade tariffs for the moment.

Still, with the uncertainty and the anticipation that other industries could also be hit, manufacturers are expected to remain cautious. The durable goods orders also feed into the quarterly GDP figures and could therefore impact the markets to a certain extent.

Based on the above, today's trading signal is EURUSD. The currency pair was seen posting losses on the day on Tuesday. The rebound is however expected to remain limited. Following a modest intraday rebound to 1.1680, the EURUSD currency pair is expected to close lower on the day.

eurusd signal 27 jun 2018

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.