Daily Afternoon Report 15/05/2015
The euro pared losses against the U.S. dollar today after data showed that U.S. consumer sentiment deteriorated to the lowest level since November 2014, adding to concerns over the strength of the economic recovery. The University of Michigan said in a preliminary report that its consumer sentiment index fell to a seven-month low of 88.6 this month from 95.9 in April. Analysts had expected the index to decline to 96.0 in May. The UoM also said its inflation expectations for the next 12 months ticked up to 2.9% this month from 2.6% in April.
In addition, the Federal Reserve reported that U.S. industrial production fell 0.3% in April, confounding expectations for a 0.1% rise. The change in industrial production in March was revised to a 0.3% decline from a previously estimated 0.6% fall.
U.S. manufacturing production was flat last month, compared to expectations for an increase of 0.2%. However, the change in manufacturing production for March was revised to a 0.3% rise from a previously estimated 0.1% uptick.
The data came after the Federal Reserve Bank of New York said its Empire State manufacturing index rose to 3.9 in May from minus 1.19 the previous month. Analysts had expected the index to climb to 5.00 this month.
Elsewhere, sentiment on Euro remained vulnerable as Greek officials were set to hold talks with the euro area and the International Monetary Fund on Friday, amid mounting pressure for Athens to seal an agreement for aid as it runs out of cash reserves and time.