The US dollar once again rose against the European currency and the British pound after the report on the demand for durable goods in the United States. Just excellent performance over the past seven months, which exceeded all expectations of economists, only increased the demand for the US dollar.
The report indicates that the growth was due to increased orders for civil and military aircraft, which are very volatile.
According to the US Department of Commerce, orders for durable goods, which have a service life of more than three years, in March of this year increased by 2.7% compared with February and amounted to $258.52 billion. Economists had expected orders to grow only by 0.8% in March compared with the previous month.
Data for February were also revised for the better. The report indicates that the February drop in orders was 1.1%, while the initial estimate stated a decline of 1.6%.
If we take the general data for the 1st quarter of 2019, then the demand for durable goods increased by 3% compared with the same period of 2018.
As mentioned earlier, orders for non-defense goods, excluding aircraft, rose by 1.3% in March, after rising by 0.1% in February. For the first quarter, orders in this category increased by 2.8% compared to the same period in 2018.
Orders for civil aircraft in March increased by 31.2% compared with February, and orders for defense goods increased by 7.4% compared with the previous month.
Given the good growth rates of orders, everything suggests that the investments of American companies in the 1st quarter of this year will also show an excellent result, which will benefit the American economy and lead to its growth.
Today, a report on the labor market was also published, in which optimism among traders diminished compared with previous figures.
According to the US Department of Labor, the number of Americans applying for unemployment benefits for the first time has increased dramatically. Despite the growth, the data are only weekly and do not greatly affect the overall situation.
Thus, the number of initial applications for unemployment benefits for the week from April 14 to 20 increased by 37,000 and amounted to 230,000. Economists had expected the number of applications to be 200,000.
The moving average of applications for four weeks also increased by 4,500 and amounted to 206,000.
Such data also indicate a small deficit in the labor market, as employers do not want to dismiss their employees. Let me remind you that last month, the unemployment rate in the United States was 3.8%.
As for the technical outlook for the EURUSD pair for the next few days, the sellers will still strive to upgrade the major support level at 1.1080, and the buyers will try to reach the resistance of 1.1180, which could put further bearish momentum in risky assets into question.
The material has been provided by InstaForex Company - www.instaforex.com