Home Philly Fed Manufacturing Index Goes Negative – Dollar Slides
Forex News Today: Daily Trading News

Philly Fed Manufacturing Index Goes Negative – Dollar Slides

The Philly Fed Manufacturing Index for May dropped to -5.2. It was expected to rise from 1.3 to 2.5 points. This is a very early indicator of manufacturing, and therefore has a significant impact, even though manufacturing is definitely not the biggest sector in the US. The disappointing number joins a growing list of shortfalls in the last few days.

EUR/USD traded around 1.29 before the publication and it hit immediately afterwards. USD/JPY traded around 102.20 and is struggling to hold on to 102. GBP/USD is getting close to 1.53, and AUD/USD is making an attempt to recapture the 0.9850 line it lost earlier.

The forward looking new orders component plunged to -7.9 – the lowest since June 2012. The employment component fell to -8.7, which is the lowest since September 2009, and is quite worrying.

Expectations may have been a bit lower after the negative Empire State Manufacturing Index released yesterday.

Earlier, the US reported mostly disappointing figures: jobless claims leaped from the lows of 328K to 360K, within the previous range. This sent the dollar lower across the board. In addition, CPI showed no inflationary pressures whatsoever, and housing figures were mixed.

Further reading:  Abenomics showing early success – Where next for USD/JPY?

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.