The report indicated that Dallas Fed Manufacturing Index declined from -18.1 in September to -19.2 in October, compared to analyst consensus of -15.
Production Index declined from 7.9 in September to 5.2 in October, while Capacity Utilization Index decreased from 7.8 to 5.4. New Orders Index declined from -5.2 to -8.8.
Treasury yields moved towards session highs after the release of the report. Traders continue to prepare for the Fed Interest Rate Decision, which will be released on Wednesday.
U.S. Dollar Index is losing some ground despite rising Treasury yields. It remains to be seen whether Dallas Fed Manufacturing Index report will have a material impact on the dynamics of the American currency today. Traders may stay focused on geopolitics and Fed policy outlook ahead of the Fed meeting.
Gold pulled back below the $2000 level as demand for safe-haven assets declined. Traders bet that Israel – Hamas conflict will not spread to other countries in the region.
SP500 settled below the 4140 level after the release of the Dallas Fed Manufacturing Index report. Major indices are trying to rebound after the recent pullback, but traders remain cautious ahead of the Fed decision.
Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.