U.S. Dollar Rallies on Durable Goods Data
August 27, 2008
U.S. durable goods for July smashed through analyst expectations today jumping up by 1.3% m/m, matching the upwardly revised 1.3% increase in June (originally +0.8%). Even after stripping out the volatile transportation orders, demand for durable goods rose 0.7% while analysts were expecting a 0.5% decline. With most analysts in the market expecting to see durable goods orders unchanged due to the current economic conditions, the surprise outcome helped U.S. dollar rally 0.8%.