JOLTs and Factory orders due at 10 AM ET

The USD is dipping further to the downside in early US trading ahead of the JOLTs job reports and the US Factory orders including revisions to Durable goods orders.

What is expected:

• JOLTs job openings 8.355M vs 8.488M last month

Last month the details showed:

For factory orders:

• factory orders for April 0.6% versus 0.8% last month

The preliminary durable goods report showed:

• Durable goods orders for April 0.7% versus -0.8% expected. Prior month 0.8%
• Ex-transport +0.4% versus 0.1% expected. Last month 0.0%.
• Ex-defense MoM was 0.0% vs 1.2% last month
• Nondefense Cap Ex-air 0.3% vs 0.1% expected. Last month -0.2%.
• Shipments were up 1.2% month on month. YoY shipments are up 2.3%

For the year:

• Durable goods orders rose 0.5%.
• Ex-transportation +2.1%
• Ex Defense + 1.4%

Money markets are currently pricing in:

• 80% chance of a September cut
• Fully pricing in a November cut

The cumulative cuts by end of year is about 45 basis points which is just short of 2 cuts.

This article was written by Greg Michalowski at www.forexlive.com.