US durable goods orders drop
Durable goods orders in the US have fallen -2.5% in June, with a decline of -0.7% ex transportation costs. This drop is in excess of market expectations, which forecast a 0.5% decline. Foreign exchange rates for the US dollar and yen rose immediately after the data release, sending the pound and euro to daily lows.
The sharp decline in figures comes due to a significant decrease in transportation orders following recent turmoil in the automobile industry. The Fed's beige book is also due this afternoon and if the figures are negative, this could trigger further demand for the US dollar and yen.
Foreign exchange rates for the USD are currently at GBP0.6100 and EUR0.7090
The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.