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USD Forex Market Continues to Bounce Back on Positive Data - Securities.io

  • US Durable Goods Orders Boost Greenback
  • Pound Stabilizes Amid PM Retirement Speculation
  • S&P 500 Starts Slow Targeting Another Record Close

The EUR/USD forex market endured a further slide on Tuesday as the Dollar continued to exhibit strength on the back of better than expected data from durable goods orders. The pair started the day below the $1.18 mark. In the UK, Sterling also regained some traction despite the ongoing deadlock surrounding Brexit trade negotiations with the EU. Back in the US meanwhile, the opening bell brought a flat response from the S&P 500 as it chases an 18th record close of the year.

USD Support Found After Positive Durable Goods Orders

Those forex trading the US Dollar have had a torrid year to date, particularly with recent weeks. The US Dollar had been persistently weakening and refused to find support from anywhere, a pattern which saw great doubt cast on its status as one of the world’s favored safe haven currencies. The Greenback made up good ground on the Euro today though as durable goods orders beat expectations for July.

In fact, the orders managed to smash through what analysts had expected posting gains of 11.2% against a backdrop of the 4.3% which was predicted. While this number gave forex markets a boost, the spending on US made non-defense capital goods excluding aircrafts fell from the June numbers, to 1.9% which, although still met expectations, may well point to a slower return to normal than had been expected.

Sterling Stabilizes Amid PM Quit Rumors

There has still been a distinct lack of progress on Brexit trade negotiations between the UK and the EU member states as they try, so far without success, to reach a trade agreement which could help shape the post Brexit landscape for both sides. Neither side appear willing to budge on a number of key issues despite numerous talks. Only two months remain to find agreement, forex brokers noting that this has started to hurt the Pound.

One man who may be budging though, is UK leader Boris Johnson. Rumors are swirling that he is set to step down as Prime Minister once the Brexit transitional period is complete at the end of the year. According to an article in The Times newspaper in London, Johnson is still struggling with the after effects of coronavirus and is set to retire.

S&P 500 Seeks Another Record Number

Wall Street opened quietly today with the only major movement coming from software company Salesforce. They reported huge earnings after closing yesterday for the second quarter which beat both top and bottom lines. They are currently trading up a massive 17% since the open.

The S&P 500 continues to hit new highs, while in the US, coronavirus cases continue to move lower, a welcome sign as returns to school approach. The market started the day flat with just a 0.2% climb as it aims to close in on an 18th record close for the year.

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https://www.securities.io/usd-forex-market-continues-to-bounce-back-on-positive-data/

2020-08-26 14:59:27Z
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