Services and Manufacturing PMIs are out on Wednesday at 11:30 MT time.
Will the US economy withstand the virus hit?
US Monthly Durable Goods Orders will be announced on Wednesday at 14:30 MT time.
Instruments to trade: EUR/USD, USD/JPY, USD/CHF, GBP/USD
Monthly Durable Goods Orders are a very good indicator of how the US industry responds to the virus. As it comes in hindsight, the figure that will be announced on Wednesday will refer to the month of February. That’s when the virus already changed gears and started smashing doors of states in all continents – primarily, the US. For the latter, however, February still was an “introductory” chapter, so the company managers did not yet go hardcore to factor in the virus damage and reflect it with lower orders for production. Hence, with this indicator out, we will be able to observe first-hand the evolution of the US industry’s pricing-in of the global damage. If the figure is higher than the expectation, this will support the USD confirming the strong fundamentals of the American economy Donald Trump and Jerome Powell liked to mention.
- If the figures outperform the expectations, the USD will gain strength;
- If the figures come lower than expected, the USD will lose value.
The market sentiment is mixed as investors weigh US stimulus package against the rising infections and worse-than-expected US unemployment claims. Jump in for fresh analysis of EUR/USD, USD/JPY, S&P 500 and gold!
US Initial jobless claims will be announced on Thursday at 15:30 MT time.
The US dollar has broken through the key resistance, it failed to cross since March so far. Riskier assets are dipping. Let’s discuss it in detail.