Global macro overview for 27/06/2016:
Last Friday, the US Durable and Core Durable Goods Orders data were released, and both of them failed to meet market expectations. The Durable Goods Orders decreased 2.2% in May, while the forecast stood at a 0.5% decline. At the same time, April's data was revised down from 3.4% to 3.3%, increasing the negative effect of the previous data. Moreover, the Durable Goods Core data, which excludes the transportation sector, also disappointed market participants, as they edged lower from 0.5% to -0.3%, while the forecast had been at the level of 0.1%. The main reason for such a negative result was the transportation sector that decreased 5.6% during the previous month. In conclusion, not a nice picture is being presented both from the Durable Goods data and the latest Manufacturing PMI data. It looks like the factory orders are unlikely to post significantly better numbers in the next few months.
Let's now take a look at the US Dollar index technical picture on the daily time frame. We can clearly see that after the Brexit, the bulls have managed to break out above the important resistance at the level of 95.97 and made another higher high. The next target for bulls is the test/breakout of the golden trend line around the level of 98.00.
