EUR/USD (a 4-hour chart)
The US dollar got back its previous positions after the data on the orders for the goods of long use were weaker than it was forecasted. The last week of summer will be pretty quiet, and the overreaction of the market for durable goods orders may serve as confirmation of this assumption. However, traders should remain alert and be prepared for unexpected market fluctuations, taking into account the readiness of the Fed Reserve start reducing asset purchase program in the near future, as well as the rich calendar of economic events in the Eurozone and atypical activity of central banks in the developing markets.
Orders for durable goods, which were the only index released in North America, registered a decrease of 7.3% in July, indicating a probable reduction in manufacturing activity in the country. Economists had expected the index fall by only 4%, but the sharp decline in orders for aircraft caused an even greater decrease in the index as a whole and, as a result, a massive dollar sell-off after the publication of the news. Excluding transportation orders index fell by 0.6%, the cause of which was the weakening of demand for computers and electronics.