Technicals

FXstreet.com (Barcelona) - Activity in the manufacturing sector of the NY Fed area has deteriorated somewhat in May, with the business conditions index falling to negative figures after the strong pick up posted in April, according to the latest manufacturing report by the NY Federal Reserve.

The general business conditions index had drawn back to a level of -3.73 points in may, from the 0.6 points level in April. New orders remain close to zero, although they fall to -0.46 from 0.06. The shipments index decline sharply although it remains in positive levels. The employment index has improved to 1.09 in May from 0 in April.

Furthermore, respondents state that prices paid have increased 8.7% in the last twelve months and they expect them to rise about 6.8% higher over the next 12 months. Prices charged, however, have risen by 2.9%, and they expect a 4.1% increase in the next 12 months.