US Factory orders in May increased 0.7%, beating forecast of a 0.1% gain, and improving from -0.6% reading for April and a -2.1% reading for March , according to the Census Bureau.

This should pave way for some initial risk-on trading. The S&P500 started to move up even before the release, popping above an overnight high of 1360.56 to almost 1365 before stalling a bit. This opens up a new high for the week, and really the highest point since early May.

Expect some near-term US-weakness and JPY weakness, with strength in the EUR, GBP, and the commodity currencies.

Fan Yang CMT is a forex trader, educator and Chief Currency Analyst of FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.