US Core Durable Goods Orders will be Released on October 25

U.S. Core Durable Goods Orders will be released on October 25

The United States Census Bureau is going to publish its Core Durable Goods Orders data today. Analysts forecast a 0.5% growth, a similar percentage as the previous month. The report from the Core Durable Goods measures the value of new orders that are received by manufacturers of durable goods in the United States, excluding transportation goods. It provides an estimate of the output that is likely to occur over short time frames.

If the report is going to align with, or better than forecast, there is a possibility that confidence in the U.S. economic stability may increase with probable hefty demand for the dollar. A report exceeding expectations can thus indicate industrial activity has picked up, causing investors to view the U.S. economy in a better light.

On the flip side, if the report is disappointing, then the concerns are going to pour in about a slowdown in manufacturing growth. That could be a huge worry for the markets, and the dollar would start getting somewhat uncertain as the softening readings of orders are interpreted as a sign of economic slowing.

Upcoming retail sales data could hint at Canada's economic health

Statistics Canada will be issuing the Core Retail Sales today at 12:30 GMT. According to economists, it's likely to contract by 0.3% from the August performance, which was up 0.4%. This is the cumulative change in retail sales in stores covering a large group, excluding automotive and parts sales.

A report that comes below the forecast indicates a weaker consumer spending profile, with a potential question about whether there is a slowdown in Canada's economic activity. Such may, in fact, place some pressure on the Canadian dollar (CAD) downwards.

However, if the number somehow exhibits stronger growth than expected, consumer activity might appear to be more resilient than was otherwise forecasted. That may turn out to have a chance of buoying CAD as it will indicate an economy that will prove healthier.

Other economic factors and investor sentiment may further have an influence on market reactions, so the outcome cannot be forecasted until the report comes out.