Home Philly Fed Index goes negative – USD follows
Forex News Today: Daily Trading News

Philly Fed Index goes negative – USD follows

The Philly Fed Manufacturing Index dropped to -6.3. This is a huge disappointment, after the USD had a small breather. It was expected to tick lower from 9.4 to 9.2 points in the month of February. The report carries weight as it is an early indicator for the current month.

Before the release, EUR/USD traded at 1.3710, GBP/USD at 1.6670 and USD/JPY at 102.20. The US dollar is now retreating with the biggest impact seen in USD/JPY.

Beforehand, CPI and jobless claims came out exactly as expected, and little changed since the previous releases, thus hardly having an impact on currencies.

However, Markit’s Flash Manufacturing PMI posted a very positive surprise: 56.7 points: 3 more than in January and much higher than expected. This is the preliminary release, and not as important as the ISM manufacturing PMI, but nevertheless, an optimistic sign for the small manufacturing sector.

Despite some weak economic signs seen recently from the US, the taper train remains on track, and the FOMC meeting minutes affirmed that.

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.