USD: May Philly Fed Index Declines Exceed Expectations
The Philadelphia Manufacturing Index came at 4.5 decline versus 15.5 upside in the April month and 7.7 expected decline numbers. The Manufacturing Sector contraction shows this reading, US Dollar moved up after the data release. Market digest the reading due to yesterday’s CPI data fall is a bigger impact than this reading.
EURUSD is moving in an Ascending channel and the market has fallen from the higher high area of the channel
[post poll id=492317]
A report released by the Federal Reserve Bank of Philadelphia on Thursday revealed a significant deceleration in the rate of growth in Philadelphia-area manufacturing activity during the month of May. The Philadelphia Federal Reserve, commonly referred to as the Philly Fed, reported that its diffusion index for current general activity plummeted to 4.5 in May from 15.5 in April. It’s important to note that despite this decline, a positive reading still signifies growth in the sector. Economists had anticipated a lesser decrease, with expectations of the index dropping to 8.0.
Looking towards the future, the Philly Fed indicated that firms in the region maintain expectations for growth over the next six months, suggesting optimism regarding the sector’s trajectory.
USD: Philly Fed Index Drops as New Orders Decrease
The Philadelphia manufacturing Index experienced a decline of 4.5 points, a significant deviation from the 15.5-point increase observed in the previous month of April and also differing from the anticipated decline of 7.7 points. This contraction in the manufacturing sector was reflected in the data, causing an upward movement in the value of the US Dollar following its release. However, market reactions were tempered by the fact that the impact of yesterday’s Consumer Price Index (CPI) data, which showed a larger decrease, outweighed the significance of this particular reading.
USD Index market price is moving in box pattern and market has fallen from the resistance area of the pattern
According to a widely-tracked survey, factory activity in the US mid-Atlantic region exhibited a slightly larger slowdown than anticipated in May.
The Federal Reserve Bank of Philadelphia’s manufacturing sector index, a key indicator of regional manufacturing health, declined from a reading of 15.5 in April to 4.5 for May.
Economists had predicted a more moderate decline, expecting the index to decrease to 8.
Of particular note, a sub-index measuring new orders experienced the most significant drop, plummeting from 12.2 to -7.9.
However, there was a slight decrease in the sub-index tracking the prices paid, declining from 23.0 to 18.7.
On a more positive note, another sub-index linked to the number of employees showed improvement, rising from -10.7 to -7.9.
USD: Philly Fed Index Dips on Decline in New Orders
- The Philadelphia manufacturing Index saw a decline of 4.5 points, contrasting sharply with the 15.5-point increase recorded in April month and deviating from the expected decrease of 7.7 points.
- This decline reflects a contraction in the manufacturing sector, prompting an upward movement in the US Dollar following the data release.
- Market reactions were tempered by the larger impact of the previous day’s Consumer Price Index (CPI) data, which showed a more significant decrease compared to the Philadelphia manufacturing Index reading.
- The US Dollar moved up after the reading came, ISM Manufacturing Sector moved below 50.00 reading in the recent months. Domestic data continuous fall in this week makes US Dollar corrections from Higher range.
- US PPI reading came at higher this week as 2.2% in the April month from 1.8% printed in the March month, CPI reading printed at 3.4% in the April month from 3.5% printed in the last month.
USDCHF is moving in Ascending channel and market has reached higher low area of the channel
The latest findings from a closely-monitored survey indicate that factory activity in the mid-Atlantic region of the United States experienced a slightly more pronounced slowdown than initially anticipated in May.
Specifically, the manufacturing sector index published by the Federal Reserve Bank of Philadelphia declined from a robust reading of 15.5 in April to a more modest 4.5 for May.
This decline was steeper than the forecasted drop to 8, as projected by economists.
Within the components of the index, the sub-index measuring new orders recorded the most significant decrease, plunging from 12.2 in April to -7.9 in May.
Meanwhile, the sub-index tracking prices paid also saw a decline, albeit less steep, dropping from 23.0 to 18.7 over the same period.
Conversely, there was a positive development observed in another sub-index related to the number of employees, which improved from -10.7 in April to -7.9 in May.
Don’t trade all the time, trade forex only at the confirmed trade setups
Get more confirmed trade signals at premium or supreme – Click here to get more signals , 2200%, 800% growth in Real Live USD trading account of our users – click here to see , or If you want to get FREE Trial signals, You can Join FREE Signals Now!
