The dollar rose against the yen and Swiss franc after strong U.S. factory orders data on Tuesday. The May number of factory orders jumped 0.7 percent from April’s revised drop of 0.7 percent. Consensus was for the number to remain unchanged. This was the first increase in three months, easing concern that the manufacturing sector in the U.S. is faltering.
A break down of the report by the U.S. Commerce Department shows that factory orders excluding transportation equipment, increased 0.4 percent in May after falling 0.9 percent the prior month.
Meanwhile orders for durable goods, (which are meant to last at least three years) climbed 1.3 percent, also the first gain in three months. They make up just over half of total factory demand.
USDJPY rose to 79.92 within fifteen minutes after the data at 10am New York time, from a level of 79.79 just before the data. Dollar also gained versus the Swiss franc, with USDCHF rising to 0.9551, up from a low of 0.9542.