Technicals

FXstreet.com (Barcelona) - Manufacturing activity in the Fed Richmond area has contracted in June for the third consecutive month, weighed by declines in shipments and new orders, according to the latest manufacturing survey by the Richmond Federal Reserve.

In July, the current activity index has declined to -16 from -12 in June, against the market expectations of a slight pickup to a level around -8.

Shipments, that fell 12 points to -23, and new orders, which moved down four points to -17 have been the largest contributors for the decline and, in a lesser extent, the employment index, which climbed seven points to -5.

Other indicators suggested weakening of the sector's activity, capacity utilization fell six points to-15, and vendor delivery times turned to negative, down four points to -2, the orders backlogs index remained unchanged at -22, and the finished goods inventory index edged down one point to 27.