Quite a mixed picture for the US manufacturing sector if we look at the recent indicators for January. The Philly Fed manufacturing index falls to 6.3 points, much worse than expected. It is the worst since March 2014 and much lower than levels seen a few months ago in this index. This comes in contrast to the good Empire State number.
The dollar is slightly lower.
More details: employment plunged from 22.4 to 7.2 points. Prices are down to 14 and new orders to 15.7 points.
The Philly Fed Manufacturing Index was expected to drop to 20.3 points in January, from 24.5 points in December. This early indicator provides a look into the manufacturing sector.
The dollar returned to some strength towards the publication in a very exciting day in markets following the shocking SNB decision.
The Swiss National Bank removed the 3 year+ floor of 1.20 under EUR/CHF. The Swiss franc leaped more than 13% and the euro was the big loser.
The Swiss authorities are just unable to withstand the downward pressure on the euro and to defend the cap. The upcoming ECB decision, which is set to include a big announcement of QE in the euro-zone, certainly had an impact.
Earlier, the Empire State Manufacturing Index hit 10 points, beating expectations. However, other US figures were not all good.
In the US, the big event tomorrow is the release of consumer confidence. See how to trade the event with EUR/USD.
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