Expected rebound in US durable goods orders may bolster dollar
SPY•An expected September rebound in US durable goods orders could support the dollar, while tax uncertainty and upcoming central bank decisions may affect sterling, the euro, the Canadian dollar and the New Zealand dollar.
1. Currency outlook
Expected gains in US durable goods orders could support dollar demand after safe-haven flows. Sterling faced pressure from tax uncertainty ahead of Chancellor John Healey’s first Autumn Budget on Wednesday, while the euro traded cautiously before the European Central Bank’s decision later in the week. Falling oil prices pressured the Canadian dollar, though an expected Bank of Canada rate hike on Wednesday could limit losses; the New Zealand dollar rose ahead of a widely expected Reserve Bank of New Zealand rate hike that day.
