More positive news in the US
American durable goods orders rose more than expected in May with gains in almost all the manufacturing sectors. Total orders rose by 3.6%, compared with expectations of 3.0%. The figures were boosted by a sharp increase in aircraft orders notably Boeing; but leaving out transport components core orders were upbeat and capital goods orders climbed 1.1%. This suggests we’ll see even more positive manufacturing data over the coming months.
US home prices rose faster than they have done for more than seven years in April evidencing improving strength in the sector. A major indicator which is the Case-Shiller index of property values increased by 12.1% from April 2012, the largest annual increase since March 2006. The sale of new build also exceeded forecasts rising by 2.1% to 476,000.
The better than expected run of US data helped the US dollar extend recent gains with EUR/USD falling to a low of 1.3030. GBP/USD slipped below the 1.54 level yesterday currently trading around 1.5350 and the GPB/EUR at 1.1780.