US: Chicago Fed National Activity Index drops to -0.15 in May vs. 0 expected

Chicago Fed National Activity Index fell modestly to -0.15 in May.
The US Dollar Index printed weekly lows under 102.00 after the report and following Jobless Claims.

Matías Salord FXStreet

The Federal Reserve Bank of Chicago's National Activity Index (CFNAI) dropped to -0.15 in May from 0.14 in April (revised from 0.07). This reading came in weaker than the market expectation of 0.

“Two of the four broad categories of indicators used to construct the index decreased from April, and three of the four categories made negative contributions in May. The index’s three-month moving average, CFNAI-MA3, increased to –0.14 in May from –0.20 in April”, the Chicago Fed noted in its publication.

“The CFNAI Diffusion Index, which is also a three-month moving average, moved up to –0.09 in May from –0.14 in April. Thirty-nine of the 85 individual indicators made positive contributions to the CFNAI in May, while 46 made negative contributions.”

Market reaction:

The US dollar weakened after the release of data and also following the Jobless Claims report. As a result, the DXY (US Dollar Index) dropped below 102.00, reaching a fresh weekly low.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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