- US orders for durable goods increase Greenback
- Pound stabilizes in the midst of PM pension speculation
- The S&P 500 starts slowly targeting another item close
The EUR / USD foreign exchange market endured a further slippage on Tuesday as the dollar continued to show strength on the back of better-than-expected data from lasting orders. The pair started the day below the $ 1.18 mark. In the UK, Sterling also regained some traction despite the ongoing stalemate surrounding Brexit trade negotiations with the EU. Back in the US, the opening bell brought a flat response from the S&P 500 as it chases an 18th record end of year.
USD support found after positive lasting orders
These forex trading with US Dollar have had a tough year to date, especially with the recent weeks. The US dollar was persistently weakened and refused to find support anywhere, a pattern that cast so much doubt on its status as one of the world’s preferred currencies for safe haven. The greenback provided a good basis for the euro today, although orders for durable goods beat expectations for July.
In fact, orders managed to break through what analysts had expected them to have a gain of 11.2% based on the 4.3% predicted. While this figure gave forex markets a boost, spending on non-defense U.S. capital products fell, excl. Aircraft, from the June figure to 1.9%, which, although still meeting expectations, may well point to a slower return to normal than expected.
Sterling stabilizes in mid-PM Quit rumors
There has still been a clear lack of progress on the Brexit trade negotiations between the United Kingdom and the EU Member States, as they have so far unsuccessfully sought to reach a trade agreement that could help shape the Brexit landscape on both sides. Neither party seems willing to bow to a number of key issues despite numerous talks. There are only two months left to find agreement, and forex brokers note that this is starting to hurt the pound.
One man who may be buzzing is British leader Boris Johnson. Rumors are swirling that he will have to resign as prime minister when the Brexit transition period ends at the end of the year. According to an article in The Times of London, Johnson is still battling the aftermath of coronavirus and is destined to retire.
The S&P 500 is looking for another record number
Wall Street opened quietly today with the only major move from software company Salesforce. They reported huge earnings after closing yesterday for the second quarter, hitting both top and bottom lines. They are currently trading at a massive 17% since opening.
The S&P 500 continues to hit new heights, while in the US coronavirus cases continue to move lower, a welcome sign when they return to the school method. The market started the day flat with only a 0.2% increase as it aims to close in on an 18th record close to the year.