U.S. durable goods orders likely to decline in November, capital goods to register rise

Durable goods orders in the United States are expected to have declined during the month of November, while the indicator of core capital goods is expected to have risen during the same period. The world’s largest economy continues to shower green shoots as we move into 2017.

The November Commerce Department durable goods orders report, scheduled to be released on Thursday at 13:30GMT, is expected to decrease -3.5 percent m/m in November, compared to the +4.6 percent m/m reading that occurred in October. However, core capital goods orders are likely to remain positive, increasing by 0.5 percent, on an m/m basis, compared to the 0.2 m/m percent rise in October.

Also, the Fed's preferred measure of inflation, the core PCE deflator, is expected to stay flat at 1.7 percent y/y, which should not bring any change to the Fed outlook. Core PCE inflation has been on a steady rising path this year, lifting from the low last year at 1.3 percent.

Inflation pressures are rising gradually as the job market is tightening and commodity prices have moved higher. Personal spending released in the same report is expected to be unchanged at 0.3 percent m/m and has shown a moderation in recent months after a summer boost to spending, Danske Bank reported.

Meanwhile, the dollar index traded at 102.92, down -0.10 percent, while at 8:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at 67.07 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex