US durable goods better than expected - no USD reaction!
Clearly, we can see that US data is having a limited impact on the market, with the stronger than expected durable goods orders for Jan in the US seeing little or no reaction across the board. The headline number is up 0.4% vs a forecast of -0.5% while ex-defence and air are up 0.8% vs 0.1%.
We would have expected more of a response from EUR/USD which is pressing against key resistance into 1.1300, however traders seem to be little interested in doing anything other than challenge the levels seen ahead of the ECB meeting and announcements last week.
Similarly, USD/JPY is stuck in a tight range above 111.00, with movement from this morning's levels somewhat limited and we may need to see how US stock markets fare this afternoon to get a response here.
Durable goods can be erratic at times and its influence on the market is limited at the best of times, although notable is the fact that such a marked deviation from expectations is getting little consideration. From that, we can assume technical factors are currently in play, with GBP pairs drawing the bulk of interest as the UK embarks on more Brexit votes later on this evening.
Cable recovered back through 1.3100 overnight and has since stalled ahead of 1.3175-80, however seems well anchored around the 1.3150-60 level for now.