Burning forecast: orders for durable goods 2:30 P.M .London Time
New orders: Forecast is -5.8% (minus). Previously + 6.5% (month to month).
New orders will rise + 16% (year-on-year).
New orders excluding automobiles + 6.8% (year-on-year).
Capital goods + 5.6% (compared with the previous year).
We see in this indicator a strong growth in the US economy - a huge +16% increase in orders. However, for the most part, the orders are for Boeing airplanes (amid the airline boom in the world) - and without them growth will only be at + 6.8% - but it is still a huge figure.
The growth of capital goods is also impressive , + 5.6% for the year.
On the reaction of the market:
The growth of US indices can be expected.
As for the foreign exchange market: the data requires the strengthening of the US dollar and, perhaps, it will. However, the market's attention is focused on the speech of ECB head Draghi today at a meeting of the heads of the Central Bank in Jackson Hole, and this can cause the market to ignore the data.
The material has been provided by InstaForex Company - www.instaforex.com