• Philly Fed Manufacturing Index improved modestly in January.
• The US Dollar fails to gain any respite and remains depressed.

The Federal Reserve Bank of Philadelphia's Manufacturing Business Outlook Survey's diffusion index for current general activity improves to -8.9 in January from -13.8 in December. This print comes in better than market expectations, though does little to provide any meaningful impetus.

Market reaction

The US Dollar remains on the defensive amid rising bets for a less aggressive policy tightening by the Fed, though a fresh wave of the global risk-aversion trade helps limit the downside.