US: NY Empire State Manufacturing Index slumps to -11.6 in May vs. expected drop to 15.5

The headline NY Fed Manufacturing Index slumped to -11.60 in May from 24.6 in April, much bigger than the expected drop.
The subindices were mixed and the US dollar seemed to weaken a tad.

Joel Frank Independent Analyst

The headline General Business Conditions Index of the NY Fed's Empire State Manufacturing Survey slumped to -11.60 in May from 24.60 in April. That was much larger than the expected drop to 17.00 and marked the largest miss on expectations since April 2020, when the pandemic first struck the US.

Subindices:

The New Orders Index fell to -8.8 in May from 25.1 in April.
The Prices Paid Index fell to 73.7 from 86.4.
The Employment Index rose to 14.0 from 7.3.
The Six-Month Business Conditions Index rose to 18.0 from 15.2.

Market Reaction

The DXY saw some weakness in wake of the latest NY Fed data, though remains reasonably well supported in the mid-104.00s. The data has resulted in heightened calls that the US might be in/going into a recession.

Author

Joel Frank

Independent Analyst

Joel Frank is an economics graduate from the University of Birmingham and has worked as a full-time financial market analyst since 2018, specialising in the coverage of how developments in the global economy impact financial asset

GBP/USD advances to six-month high above 1.3650

GBP/USD extends its weekly rally and trades at its highest level since February above 1.3650 as the upbeat PMI data supports Pound Sterling despite disappointing Retail Sales figures. Meanwhile, the US Dollar (USD) struggles to stay resilient against its peers following the Treasury Department's decision to boost long-term bond purchases earlier in the week, helping the pair gather bullish momentum ahead of US PMI data.

EUR/USD rises above 1.1700 ahead of US PMI data

EUR/USD gains traction in the European session on Friday and trades above 1.1700 despite the mixed PMI prints from Germany and the Eurozone. Investors await preliminary August PMI surveys for the US, while the persistent USD weakness allows the pair to keep cling to its bullish stance.

Gold tests three-month highs near $4,600 as the US Dollar dives

Gold extends gains on Friday, with bulls aiming for a retest of the $4,600 resistance area, the top of the last six months' trading range. Precious metals are gaining momentum, favoured by a sharp US Dollar selloff, following the announcement of a US Treasury plan to boost liquidity to repurchase long-term securities.

Crypto Today: Bitcoin, Ethereum, XRP bulls accelerate rally amid rising ETF inflows

The cryptocurrency market remains bullish on Friday, led by Bitcoin’s surge above $77,000. Altcoins, including Ethereum and Ripple, mirror BTC’s positive outlook, trading near $2,400 and $1.35, respectively.

S&P Global US PMIs expected to ease slightly in August, still showing solid growth

S&P Global will release the preliminary figures of August’s US Purchasing Managers' Indices (PMIs). For August, the market consensus anticipates a mild slowdown in economic activity, with the Manufacturing PMI ticking down to 53.8 from July’s 53.9 reading and the Services PMI easing to 54.0 from last month’s 54.6.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.