Daily Afternoon Report 16.05.2016

The dollar slipped lower against the other major currencies in quiet trade on Monday, after the release of manufacturing activity data from the New York area fueled concerns over the strength of the economy.

The Federal Reserve of New York said its Empire State manufacturing activity index fell to -9.02 in May from 9.56 the previous month. Analysts had expected the index to fall to 6.50 this month.

The safe-haven yen strengthened earlier after official data showed that China’s factory output slowed to 6% in April, against expectations of 6.5%.

Investment and retail sales also grew more slowly than expected last month, adding to concerns over a slowdown in the world’s second-largest economy.

In Japan, government spokesman Yoshihide Suga on Monday denied weekend media reports that Prime Minister Shinzo Abe has decided to delay a sales tax hike scheduled for next year.

The commodity-related loonie found support as oil prices climbing to their highest level since November after Goldman Sachs (NYSE:GS) said the market shifted into deficit in May due to falling production.

The U.S. dollar index,  which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.11% at 94.50, still near Friday’s three-week high of 94.84.