Yesterday’s big data highlight was US durable goods orders for July. Headline orders decreased more than expected, by 5.2%, compared to a -4.0% drop predicted.
However, the headline figure can fluctuate from month to month. Meanwhile, ‘core’ orders increased by 0.1%, which was in line with expectations.
The dollar was firmer yesterday, and this has persisted in overnight trading ahead of Fed Chair Powell’s remarks at the Jackson Hole Economic Symposium today. In other currency news, sterling has been under pressure, coinciding with a further decrease in UK yields/interest rates.
Given that the Fed is increasingly heavily reliant on data and makes rate decisions meeting by meeting, he may not provide any firm insight on the US rate future. Today’s conference will also feature remarks from ECB President Lagarde.