Richmond Fed composite index for February 1 vs 8 previously (estimate 10)

The Richmond Fed manufacturing composite index fell to 1 versus 8 last month. The estimate was for a small rise to 10.

The decline was due to weakening indices for shipments new orders with both turning negative on the month. The good news is that employment increased to 20 from 4 in January.

On the supply side, firms reported decreases in order backlog’s (the index turned negative on the month). Vendor lead times remain near historic highs, however.

Firms remain optimistic about future conditions.

Below are the component pieces of the index for the month of February.

• Shipments -11 versus 14 last month
• new orders -3 versus six last month
• Number of employees 20 versus four last month
• Wages 35 versus 40 last month
• Availability of skills needed -16 versus -19 last month
• Average workweek -1 versus six last month
• Backlog of orders -4 versus two last month
• Capacity utilization -12 versus four last month
• Vendor leadtimes 45 versus 50 last month
• Local business conditions -6 versus -4 last month
• Capital expenditures 20 versus 16 last month
• Finish good inventories -14 versus -13 last month
• Raw materials inventories -22 versus -17 last month
• Equipment and software spending 31 versus 15 last month
• Services expenditures 12 versus two last month
• Prices paid 12.27 versus 14.32 last month
• Prices received a .7 versus 11.27 last month

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The other regional indices have come in weaker for February:

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 EURUSD 
EUR/USD

The EUR/USD is the currency pair encompassing the European Union’s single currency, the euro (symbol €, code EUR), and the dollar of the United States (symbol $, code USD). The pair’s rate indicates how many euros are needed in order to purchase one dollar. For example, when the EUR/USD is trading at 1.2, it means 1 euro is equivalent to 1.2 dollars.  Why the EUR/USD is the Most Popular Trading PairCompared to all tradable currencies, the euro (EUR) is the world’s second most traded currency, behind only the US dollar. This currency pair is the most traded and liquid currency pair on the market.As the most popular trading pair, the EUR/USD is a staple of every brokerage offering and often has some of the lowest spreads relative to other pairs. Ultimately, the currency follows the two most economic blocs in the world and sees the most volume for this reason.The EUR/USD has a wide range of factors that influence its rates. From the EUR side, economic data in the Eurozone as well as internal factors in the bloc can easily impact rates. Even small member states can effectively weigh on the EUR, as seen in Greece during bailout talks in the 2010s. Alternatively, developments in the United States and the Federal Reserve commonly affect the EUR/USD. Many examples include the bailouts during the Financial crisis, tax cuts during the Trump Administration, and Covid-19 relief measures, among others.

The EUR/USD is the currency pair encompassing the European Union’s single currency, the euro (symbol €, code EUR), and the dollar of the United States (symbol $, code USD). The pair’s rate indicates how many euros are needed in order to purchase one dollar. For example, when the EUR/USD is trading at 1.2, it means 1 euro is equivalent to 1.2 dollars.  Why the EUR/USD is the Most Popular Trading PairCompared to all tradable currencies, the euro (EUR) is the world’s second most traded currency, behind only the US dollar. This currency pair is the most traded and liquid currency pair on the market.As the most popular trading pair, the EUR/USD is a staple of every brokerage offering and often has some of the lowest spreads relative to other pairs. Ultimately, the currency follows the two most economic blocs in the world and sees the most volume for this reason.The EUR/USD has a wide range of factors that influence its rates. From the EUR side, economic data in the Eurozone as well as internal factors in the bloc can easily impact rates. Even small member states can effectively weigh on the EUR, as seen in Greece during bailout talks in the 2010s. Alternatively, developments in the United States and the Federal Reserve commonly affect the EUR/USD. Many examples include the bailouts during the Financial crisis, tax cuts during the Trump Administration, and Covid-19 relief measures, among others.
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