US: Philadelphia Fed Manufacturing Index drops to -12.3 in July vs. 0 expected

Philadelphia Fed Manufacturing Index fell sharply in July.
US Dollar Index stays deep in negative territory near 106.50.

Eren Sengezer FXStreet

The Federal Reserve Bank of Philadelphia's Manufacturing Business Outlook Survey's diffusion index for current general activity declined to -12.3 in July from -3.3 in June. This print missed the market expectation of 0 by a wide margin.

Additional takeaways

"The index for new orders declined for the second consecutive month, from -12.4 to -24.8."

"The current shipments index rose from 10.8 to 14.8. The indexes for current inventories and unfilled orders were negative, at -9.3 and -10.4, respectively."

"On balance, the firms continued to report increases in employment, but the employment index declined 9 points to 19.4, its lowest reading since May 2021."

Market reaction

The greenback struggles to find demand after this report and the US Dollar Index was last seen losing 0.5% on the day at 106.50.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

GBP/USD pops to three-week highs above 1.3400

GBP/USD accelerates its advance and surpasses the key 1.3400 barrier on Wednesday. That said, Cable clinches new multi-week tops on the back of the resurgence of the selling interest in the Greenback despite persistent tensions in the Middle East.

EUR/USD reverses losses, targets 1.1450

EUR/USD trades with decent gains north of the 1.1400 hurdle in the latter part of Wednesday’s NA session. The fresh offered stance in the US Dollar allowed the pair to revert the initial drop and refocus on the upside despite the hawkish tone from the FOMC Minutes and persistent geopolitical tensions.

Gold trims losses, looks at $4,100

Gold manages to regain some composure and bounce off earlier lows on Wednesday. The precious metal now shifts its focus to the $4,100 mark per troy ounce amid decent losses in the US Dollar and steady geopolitical jitters.

Dogecoin Forecast: DOGE risks sliding below $0.07 despite returning retail interest

Dogecoin (DOGE) edges lower toward support at $0.07 at the time of writing on Wednesday. The meme coin reflects a broader sell-off in the crypto market, primarily attributed to uncertainty over tensions in the Middle East. Iran launched attacks on American military bases in the Middle East on Wednesday in retaliation for attacks by the United States (US) on several places in Iran.

2.50%: Why the Kiwi's first hike in three years is a wager on a number nobody can see

The Reserve Bank of New Zealand (RBNZ) raised the Official Cash Rate (OCR) by 25 basis points to 2.50% at 02:00 GMT on Wednesday, its first hike in three years and the moment the bank that cut deeper than any G10 peer last cycle turned to face the other way.

Bye, forward guidance: How to trade when central banks choose silence

Central banks have spent years telling markets what might come next. Now, traders face the possibility that they say a lot less. From the Federal Reserve to the European Central Bank and the Bank of England, policymakers are pushing back against forward guidance.