Market Participants to Watch the Direction of the U.S. Dollar Following a Decline in U.S. Durable Goods Orders

Market Participants to Watch the Direction of the U.S. Dollar Following a 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 support, and on the daily chart, the pair is rebounding 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 extended its decline 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 line of the Bollinger Bands, and on the daily chart, the price has broken below the 20-MA support line with a real body candle. We will need to monitor price action during European trading hours to see if the pound continues to weaken against the U.S. dollar.

Today’s economic indicators include the Japan/Tokyo Consumer Price Index at 8:30, Australia’s Retail Sales at 10:30, Singapore’s Industrial Production at 14:00, Japan’s Economic Sentiment Index at 14:00, France’s Consumer Confidence Index at 15:45, and Russia’skey interest rates, at 21:00: Mexico’s trade balance, at 21:30: U.S. personal income, U.S. PCE deflator, and U.S. core PCE deflator, and at 23:00: 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.