• The headline NY Fed Index rose less than expected to 3.1 in February versus forecasts for a rise to 12.15.
• The dollar has been weakening in response to the data, perhaps more due to easing Core PPI price pressures (YoY).  

The New York Fed's Empire State Current Business Conditions Index rose to 3.1 in February from -0.7 in January, well below the expected rebound to 12.15. The New Orders Index rose to 1.4 from -5.0 in January, the Prices Paid Index fell slightly to 76.6 from 76.7, the Employment Index rose to 23.1 from 16.1 and the Six-month Business Conditions Index rose to 28.2 from 35.1. 

Market Reaction

The dollar has been weakening in recent trade, with the DXY recently dipping to session lows under 96.00, with weaker than forecast headline NY Fed data not helping, but likely mostly due to a drop in the YoY rate of Core Producer Price Inflation.