The Philly Fed Manufacturing Index for October dropped to 19.8. This is better than expected. Expectations stood on a slide to around 15 points from the high of 22.3 it reached in September. This survey was made during the government shutdown. The result is high in absolute terms and isn’t only a surprise in comparison to expectations.
EUR/USD reached for new 8 month highs before the publication, riding on the dollar’s weakness. The greenback was also falling against the yen and the pound.
Earlier, the US reported a high level of jobless claims once again. However, the data was skewed once again.
All in all, the US dollar is on the back foot due to the only-temporary resolution for the debt ceiling and the government shutdown debacles. A new crisis is awaiting us just after the new year.
Further reading: USD in a world of pain.
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