Market participants are watching the direction of the U.S. dollar, which fell on the back of weaker U.S. durable goods orders

Market participants are watching closely to see which direction the U.S. dollar will take following the decline in U.S. durable goods orders

26.07.2024

In the U.S. currency market yesterday, the U.S. dollar fell against the euro after the U.S. June durable goods orders, released yesterday, were sharply revised downward from the previous month’s 0.1% to -6.6%.The EUR/USD pair rose from 1.0827 to 1.0869. It climbed along the 20-period moving average (MA) on the hourly chart and recovered to just below the 200-period exponential moving average (EMA). On the 4-hour chart, the 200-period EMA is acting as a support level, while the daily chart shows a rebound from the 20-period MA.

Among European currencies, the pound weakened against the U.S. dollar. The GBP/USD pair fell from 1.2913 to 1.2845. It declined as it encountered resistance at the 20-period moving average on the hourly chart.On the 4-hour chart, the pair has touched the -3σ Bollinger Band, and on the daily chart, the price has broken below the 20-day moving average support line with a real body candle. We will need to monitor price movements during European trading hours to see if the pound continues to weaken against the US dollar.

Today’s economic indicators include the Japan Tokyo Consumer Price Index at 8:30, Australian Retail Sales at 10:30, Singapore Industrial Production at 14:00, the Japan Economic Sentiment Index at 14:00, the France Consumer Confidence Index at 15:45, the Russia Key Interest Rate at 19:30, and the Mexico Trade Balance at 21:00.at 9:30 PM, U.S. Personal Income, U.S. PCE Deflator, and U.S. Core PCE Deflator; and at 11:00 PM, the U.S. University of Michigan Consumer Sentiment Index. We will be closely monitoring the direction of the U.S. dollar, which fell following the deterioration in U.S. durable goods orders.