Global macro overview for 26/08/2016:
The Durable Goods Orders data surprised market participants yesterday as they printed better than expected figures. Market participants expected a rise of 3.4%, but the report revealed an increase of 4.4%, which was better than expected and better than the previous reading of -4.2%. According to the Department of Commerce this is the highest reading since October 2015. When we look into the details, we can see that the gain in overall durable goods orders was mainly driven by a 10.5% rise in demand for transportation equipment. Despite the fact that Durable Goods Orders are sensitive to economic changes, we can conclude here, that the forecast of US industrial output to come might beat the general consensus as well.
Let’s now take a look at the US Dollar index technical picture in the daily time frame. As we know, financial markets expect FED Chairperson Janet Yellen final speech at the annual Jackson Hole economic conference, so the movement is very limited for now. Nevertheless, it is worthy of note, that the next support is seen at the level of 94.15 and the next resistance is seen at the level of 94.96. The immediate trend still remains bullish.
The material has been provided by InstaForex Company – www.instaforex.com