• Industrial Production in the US contracted unexpectedly in May after a 0.5% increase in April.
• US Dollar Index stays in negative territory below 103.00.

Industrial Production in the US edged down 0.2% in May following April's increase of 0.5%, the Federal Reserve reported on Friday. This reading came in below the expectation for a growth of 0.1%.

Key takeaways:

“Industrial production edged down 0.2 percent in May following two consecutive months of increases.”

“In May, the index for manufacturing ticked up 0.1 percent, while the indexes for mining and utilities fell 0.4 and 1.8 percent, respectively.”

“At 103.0 percent of its 2017 average, total industrial production in May was 0.2 percent above its year-earlier level.”

“Capacity utilization moved down to 79.6 percent in May, a rate that is 0.1 percentage point below its long-run (1972–2022) average.”

Market reaction:

The US Dollar remains in negative territory across the board. The DXY is testing Wednesday’s low around the 102.65/70 area.