US: Philadelphia Fed Manufacturing Index drops to -9.9 in September vs. 2.8 expected

Philadelphia Fed Manufacturing Index fell into negative territory in September.
The greenback is struggling to preserve its strength after latest US data releases.

Eren Sengezer FXStreet

The Federal Reserve Bank of Philadelphia's Manufacturing Business Outlook Survey's diffusion index for current general activity dropped to -9.9 in September from 6.2 in August. This print came in worse than the market expectation of 2.8.

"The new orders index fell 13 points to -17.6, and the shipments index fell 16 points to its lowest reading since May 2020 but remained positive at 8.8," the publication further read. "The prices paid index declined for the fifth consecutive month, down 14 points to 29.8, its lowest reading since December 2020 and near its long-run nonrecession average."

Market reaction

The US Dollar Index stays in negative territory below 109.50 as investors assess the latest data releases from the US.

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.

EUR/USD looks well bid above 1.1600

EUR/USD extends its recovery and climbs back above the 1.1600 mark in quite an auspicious start to the week. Improved risk appetite following the US-Iran agreement to reopen the Strait of Hormuz continues to weigh on the US Dollar, lending support to the risk complex. Looking ahead, investors are likely to remain on the sidelines ahead of Wednesday's FOMC meeting.

GBP/USD climbs to multi-day highs around 1.3460

GBP/USD remains comfortably in positive territory north of 1.3400 the figure on Monday. Cable continues to draw support from an improvement in market sentiment after reports that the US and Iran have reached a framework agreement aimed at ending the conflict and reopening the Strait of Hormuz.

Gold extends the recovery, targets $4,400

Gold rallies on Monday and climbs well above the $4,300 mark per troy ounce. The precious metal benefits from renewed selling pressure on the Greenback as investors reassess the implications of the US-Iran agreement to end hostilities and reopen the Strait of Hormuz. Market participants now turn their attention to Wednesday's FOMC gathering.