• U.S. durable goods orders likely to have dropped in April

    Source: FxWire Pro - Commentary / 24 May 2018 17:02:57   America/New_York

    U.S. durable goods data for the month of April is set to be released tomorrow. In the prior month, durable goods orders had come in mixed as large gains in aircraft orders masked softness in other categories of business investment for the month. Both civilian and defense aircraft recorded double-digit gain and lifted overall durable goods orders to a consensus-beating 2.6 percent rise. Orders for machinery dropped 1.7 percent, marking the second drop in three months. ISM levels for new orders have been steadily high, while actual orders have curiously lagged.

    In March, core capital goods shipments dropped 0.7 percent. Shipments are a good indicator for equipment shipment, which came in below expectations in the first quarter. Core shipments exclude volatile transportation and aircraft orders, and for a recovery in the second quarter equipment spending, regained strength in this series need to be observed, noted Wells Fargo in a research report. In April, durable goods orders are likely to have dropped. According to Wells Fargo, durable goods orders are expected to have fallen 2 percent given a fall in Boeing orders.

    At 20:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was neutral at -3.95586. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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