Durables will lower 1Q GDP estimates. Initial claims still looking good
The US data showed durable goods still a laggard while the initial claims continues to show employment strength. The pattern of strong employment growth with so-so other data - especially business investment and big ticket items - continues.
The EURUSD has moved about 7 or so pips on the news. Mike points out the large option expiry at 1.1150-60 at 10 AM ET. The data did not put much pressure on that line in the sand. That should be suppportive. Looking at the hourly chart, the low was set against the 38.2% retracement at 1.11428. There was also a bottom side trend line there. The momentum lower is slowing as new-recent lows are finding a push-back higher. The options players could indeed be in play on the day before a 4-day holiday weekend in Europe and Canada (it is 3 day holiday in the US).
Meanwhile over in the USDJPY, we are seeing more dollar weakness. The price of the USDJPY has moved back down and is sitting on the 200 hour MA at the 112.41 level currently. A break will target the 38.2% at 112.04.
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