EURUSD 10 mins
Whenever there are five economic data releases at the same time, there will also be a mixed picture. That was the case today with Q1 GDP revised a tad higher, along with higher inflationary numbers. At the same time, corporate profits in the report were taken down and durable goods orders non-defense ex-air (a good forward-looking metric) were soft at -0.6% vs +0.1% expected.
The latter numbers appears to have stuck with the market with initial jobless claims relatively in line and trade balance set to be a small drag on Q2.
The result was a 15-pip rise in the euro against the US dollar and minor US dollar selling elsewhere.
The Fed funds futures market is pricing in 45 bps of cuts this year and that number has edged down this week with some citing hotter Australian and Canadian CPI numbers as a sign that central banks will have to be patient as they fight sticky inflation, particularly in housing and rents.