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  • Richmond Fed Manufacturing Index falls sharply in February.
  • US Dollar Index continues to stay flat near 99.30.

The activity in the Fifth District’s manufacturing sector softened in February with the Composite Index of the Richmond Fed’s Survey of Manufacturing Activity dropping to -2 from 20 in January. This reading missed the market expectation of 13 by a wide margin.

“All three components of the composite index — shipments, new orders, and employment — moved lower from January,” the Richmond Fed noted in its publication. “The index for local business conditions remained positive, and manufacturers were optimistic that activity would improve in the coming months.”

USD reaction

Although the US Dollar Index edged lower toward the 99.20 with the initial reaction to the data, it didn’t have a difficult time recovering its losses and was last seen at 99.29, where it was flat on the day.