Richmond Fed December composite index above expectations

The Fed index from Richmond jumped 16 points from an upwardly revised 12 in November and above analysts’ expectations of 11 points driven by increases in shipments and new orders. Employment moderated but remained in expansionary territory. Backlogs of new orders registered their second highest index value on record, as vendor lead times remained high and inventories remained low. Meanwhile, manufacturers reported continued investment spending. The average growth rate of prices paid and prices received by survey participants increased in December. Firms expect the growth rate of prices paid and prices received to slow over the next year. Today's release does not usually cause high volatility in the markets, but it is worth mentioning that the index is already higher than in the pre-pandemic period.

The Fed index from Richmond rose sharply in December. Source: Forexlive

EURUSD is trying to break below the 23.6% Fibonacci retrenchment once again, which is also the lower limit of the last local consolidation zone. Source: xStation5