OctaFX | OctaFX Forex Broker
Open trading account
Back

US: Factory Orders Disappoint Again, upside potential limited – Wells Fargo

FXStreet (Córdoba) - Tim Quinlan and Erik Nelson, economist at Wells Fargo Bank, analyzed today’s decline in US factory orders report. According to them an imminent resurgence in activity in the sector is hard to envision in the current environment.

Key Quotes:

“While the 1.0 percent decline in factory orders in September was in part driven by a sharp drop in aircraft orders, the ex-transportation figure also declined. Meanwhile, prior months’ figures were revised lower.”

“Despite today’s soft report, yesterday’s bounce in the ISM new orders and production subcomponents for October is an encouraging development that suggests the worst of the slowdown in factory activity may be over”.

“We have mentioned time and time again, an imminent resurgence in activity in the manufacturing sector is hard to envision given the usual headwinds (strong dollar, low commodity prices, soft global demand) remain in place, even if their effects have become less severe.”

USD/CAD tumbles below 1.3100

The Canadian dollar rose sharply across the board during the American session boosted by a rally of crude oil prices. USD/CAD broke below 1.3100 and accelerated the decline.
Read more Previous

NZ jobs data: What to expect in NZD/USD?

NZD/USD has been under pressure today on the back of the Fonterra auction and subsequent drop in dairy prices that have taken the bird to score lows of 0.6651. There has been some trivial demand there and a recovery to the 0.67 handle ahead of the NZ jobs data today.
Read more Next
Start livechat