U.S. data

• Non defense capital goods shipments (excluding aircraft) (m/m), fact 0.0%,  previous value  0.5%.
• Factory orders (m/m) (December), fact 0.1%, forecast 1.5%.
• Pending home sales (m/m) (January),  fact  4.6%,  forecast 0.8%

U.S. data, despite the slow growth in factory orders, remain positive, thanks to an index of pending sales in the real estate market, which is close to two-year highs. Industrial orders continue to show a positive trend, despite the limited volumes after decline at the end of 2018.

Fig. 1. Chart of the US index of pending home sales 

The US currency accelerated growth on this report, which was also caused by the rapid growth of the US state bonds yield. The growth of the US state bonds are also associated with the negative dynamics of stock indices, which remain under pressure amid a decline in optimism about trade negotiations.

The US dollar index moved to an upward correction after updating the low at the level of 95.90. Further strengthening of the American dollar will be limited to the level of 96.10-20.

Fig. 2. The US dollar index chart. The current price is 96.10 (10-year government bonds yield is the blue line)

Read also: “Elliott Waves. An Introduction. Basics.”

Hanzenko Anton

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