26 May 2015
Upside risks for US durable goods orders – KBC
FXStreet (Barcelona) - The KBC Bank Research Team previews the key data releases ahead in the US and their outlook on the USD.
Key Quotes
“In the US, there are plenty of eco data on the agenda with the US durable orders, House price, consumer confidence, New Home sales and the Richmond Fed index on the agenda.”
“We see downside risk for consumer confidence, but upside risks for the durable orders and for the Richmond Fed index. The scenario of improving US activity data might be a supportive for the dollar.”
“Fed speakers give the impression that the Fed doesn’t want to wait too long with starting a (gradual) rise in interest rates.”
“In a short-term perspective, Friday’s dollar rally/euro decline was overdone, at least when compared to the limited upside surprise in the US CPI. At the same time, it reinforced the feeling that the USD correction is bottoming out and that investors are becoming more confident of an improvement in the US economy going forward. Today’s data are important in this respect. We see no reason to row against the short-term USD positive momentum.”
Key Quotes
“In the US, there are plenty of eco data on the agenda with the US durable orders, House price, consumer confidence, New Home sales and the Richmond Fed index on the agenda.”
“We see downside risk for consumer confidence, but upside risks for the durable orders and for the Richmond Fed index. The scenario of improving US activity data might be a supportive for the dollar.”
“Fed speakers give the impression that the Fed doesn’t want to wait too long with starting a (gradual) rise in interest rates.”
“In a short-term perspective, Friday’s dollar rally/euro decline was overdone, at least when compared to the limited upside surprise in the US CPI. At the same time, it reinforced the feeling that the USD correction is bottoming out and that investors are becoming more confident of an improvement in the US economy going forward. Today’s data are important in this respect. We see no reason to row against the short-term USD positive momentum.”