After rising to the highest point since 2014, the New York Federal Reserve’s Empire State Manufacturing Index released which serves as a barometer for business activity in the state unexpectedly declined in May. Apart from falling into negative territory for the first time since October of last year, sliding to -1.00 in May compared to the 5.20 reported a month earlier, the index underscores concern that the New York data could be a prelude to a further deterioration in the manufacturing space.
In the meantime, the US dollar has shed ground against major peers, falling against the Japanese Yen after climbing 0.40% on Monday and gaining close to 2.00% against the Yen this month on the back of improving risk sentiment. The Euro is also gaining ground, edging back above 1.1000 and currently perched just above the six-month high of 1.1020 set last week.
US Dollar Nears 1-Week Low
Daily Analysis - 16/05/2017