Manufacturing data has been stalling, and the latest factory orders report adds to the confirmation that the US economic recover has hit a snag.
According to the Census Bureau, April's factory orders fell by 0.6% in April, after March's decline was revised to an even sharper -2.1% from the original release of -1.5%. According to Forexfactory, economists' forecasts averaged an expectation of 0.3% gain.
Poor economic data pressures the Fed to do QE or Operation Twist. On Thursday 6/7, Bernanke will be dropping clues on the issue of appropriate monetary policy to deal with the recent poor economic data highlighted by May's mere 69,000 Non-Farm job creation.